The current assets section of a balance sheet includes cash, accounts receivable, inventory and prepaid expenses.

The stockholders' equity section of a balance sheet includes capital contributed by owners and also retained earnings.

Assets are reported on the balance sheet in the order of liquidity.

Owner's equity reflects the financing provided by owners and earnings retained in the business..

In a corporation, common stock and additional-paid in capital represent the financing provided by the shareholders.

Unearned revenue is reported on the balance sheet as an asset.

The double entry concept implies that every transaction has at least two effects on the accounting equation.

Purchasing equipment for cash results in an increase in total assets.

The normal balance for an asset account is a credit and the normal balance for a liability account is a debit.

The recording of a transaction in a journal precedes the posting to the general ledger.

An asset account normally has a debit balance and is increased by crediting the account.

When a company borrows money from a bank, the statement of cash flows will report a cash increase from an investing activity.

Assets, liabilities, and stockholders' equity are all found within the income statement.

The accounts payable balance is reported in the statement of owner's equity.

Assets are resources with probable future economic benefits owned by an entity as a result of past transactions.

Liabilities are probable debts or obligations of an entity as a result of past transactions which will be paid with assets or services.

Intangible assets are included within current assets on a classified balance sheet.

Current assets listed on a balance sheet by dollar amount (largest first).

Retained earnings is the amount of net income left over for the business after it has paid out dividends to its shareholders.

A building used in daily operations is classified as a current asset.

Assets normally have a debit balance and are increased with credits.

Liability accounts normally have debit balances and are increased with debits.

Equity accounts normally have credit balances and are increased with credits.

Issuing stock in exchange for cash creates an increase in cash from a financing activity.

Current liabilities are defined as obligations to be paid within six months.