| A | B |
|---|
| revenue | increases owner's equity |
| expenses | decreases owner's equity |
| assets | owned by a business |
| liabilities | owed by a business |
| owner's equity | amount remaining after liabilities are subtracted from assets |
| withdrawals | assets taken by owner for personal use |
| transaction | a business activity that changes assets, liabilities, or owner's equity |
| capital | the account used to summarize changes in owner's equity |
| Assets=Liabilities+Owner's Equity | the accounting equation |
| balance sheet | reports the balances of the asset, liability, and owner's equity accounts |
| asset accounts | left side of balance sheet |
| liability accounts | right side of balance sheet |
| account balance | the amount in an account |
| account | a record summarizing a single item in the accounting equation |
| equities | financial rights to the assets of a business |
