A decrease in owner's equity resulting from the operation of a business is called an expense.

A financial statement that reports assets, liabilities, and owner's equity is called an income statement.

The accounts receivable account is increased by a credit and decreased by a debit.

The balance of the Cash account is reported in the income statement.

Financial reports that summarize the financial condition and operations of a business are called financial statements.

Anything of value that is owned by a business is called a liability.

A business activity that affects assets, liabilities, or owner's equity is called a business deal.

Understanding accounting can aid managers and owners in making better business decisions.

A business owned by many owners called shareholders is called a sole proprietorship.

The detail information about the profit or loss of a business are included in the Balance Sheet.

A business that has more liabilities than assets is a finacially strong business.

A business type that sells to those who use or consume the goods is called a wholesaler.

A sale in which cash is received for the total amount of the sale at the time of the sales transaction is called a cash sale.

Current Assets are cash and other assets expected to be exchanged for cash or consumed within a year.

A business sells on account in order to promote an increase in sales.

A sale on account for which cash will be received at a later date is recorded in the accounts payable account.

A list of accounts used by a business is called the chart of accounts.

Owner's equity is equal to total assets plus total liabilities.

Withdrawals are assets taken out of a business for the personal use of the owner.

In a T account, amounts recorded on the left side are called credits.