statement of owner equity reports how equity changes over the reporting period from net income (or loss) and from any owner investments or withdrawals over time period

equity accounts

+owners capital
-owners withdrawal
+revenues
-expenses

keywords in accounts

prepaid = assets
receivable = assets
payable = liability
unearned = liability

trial balance

LISTS ALL ACCOUNTS
total debits = total credits

income statement

reports revenues less expenses along with resulting net income or loss over time
-list revenues first
-then list expenses

statement of owner equity

reports how equity changes over the reporting period from net income (or loss) and from any owner investments or withdrawals over time period

balance sheet

reports financial position (types of amounts of assets, liabilities, & equity) at point in time

assets, expenses, withdrawals

DEBIT

liabilities, revenues, capital

CREDIT

Accounting

information and measurement system that identifies, records and communicates info about an organizations business activities

3 accounting functions

identifying- select transaction and events
recording- input, measure and log
communicating- prepare analyze and interpret

record keeping/ bookkeeping