| A | B |
|---|
| Assets | Things you own, such as cash, real estate, equipment, inventory. (something owned that has value) |
| Balance Sheet | An official financial statement that includes the company’s assets and liabilities. It determines the value of the company by subtracting liabilities from assets. |
| Cash | The relatively stable investments that can easily be changed into currency. |
| Credit | An entry on the right side of an account – decreases assets or increases liabilities. |
| Debit | An entry on the left side of an account – increases assets or decreases liabilities. |
| Expenses | financial burden; cost (money spent) |
| Income | a monetary gain, usually from the sale of products or services (money earned) |
| Income Statement | A financial statement of a company’s operation. Shows a company’s income, expenses, and income for a period of time. Shows the company’s profit or loss for a given period of time. |
| Liabilities | A debt or obligation (money owed) |
| Owner's Equity | The amount of the initial investment plus retained earnings (earnings reinvested in the business). The owners’ right to the assets of a business. |
