| A | B |
|---|
| Assets | the economic resources of a business |
| Liabilities | the claims of creditors against the assets of a business |
| Owner's Equity | the claim of the owner against the assets of a business |
| Cash | currency, cheques, money orders, and bank deposits |
| Furniture | desk, chairs, tables (ASSET) |
| Office Equipment | computers, photocopiers, cash register (ASSET) |
| Bank Loan Payable | the claim of a bank against the assets of a borrowing business (LIABILITY) |
| Accounts Payable | amounts owing to creditors (other than banks) for the purchase of goods or services on credit (LIABILITY) |
| Mortgage payable | a long term debt wherein the collateral consists of the property bought |
| Accounting Equation | A=L+OE |
