| A | B |
|---|
| Temporary Accounts | Used to collect information for a single accounting period |
| Temporary Capital Accounts | Start each new accounting period with zero balances |
| Permanent Accounts | Continuous from one period to the next |
| Balance for Permanent Accounts | $ bal at the end of period becomes $ bal for beginning of next period |
| Withdrawals | Decreases Capital |
| T Account for Withdrawals | Exact opposite of Capital |
| Revenue | Increases Capital |
| T Account for Revenue | Exact same as Capital |
| When Business Makes Money | Always credit or increase Revenue |
| Expense | When the business is losing $, the owner loses |
| T Account for Expense | When $ is spent debit or increase account; Normal debit bal |
| Trial Balance | Listing of account balances in two columns to prove debits = credits |
| Accounts Payable | Liability - AP |
| Advertising is an Example of | Expense |
| Accounts Receivable | Asset - AR |
