| A | B |
|---|
| Assets | things (items) owned by a company |
| Liabilities | money owed by the business (debt, accounts payable) |
| Owner's Equity | net worth of the business |
| Revenue | the amount of money that a company earns |
| Profit | results when a business' income is greater than its expenses |
| Expenses | costs of maintaining and operating a business |
| Loss | results when a business' expenses are greater than its income |
| Fiscal Period | the specific period of time covered by an accounting statement or report (1 month or 1 year) |
| Statement of Change in Owner's Equity | financial statement that reports the changes that have occurred in the owner's equity account during the fiscal period |
| Income Statement | revenue, expenses, net income or net loss |
| Financial Statements | balance sheet, income statement |
| Deductions | social security, retirement, taxes |
| Accounting Equation | assets = liabilities + owner's equity |
