1.1. Owner's Equity - The residual interest in the assets of the entity after deducting all the liabilities (What you gain) Drawings - Owner’s draws or withdrawals of cash for the owner’s personal use. May result in net decrease or increase.
2. 2. Liabilities
3. 4. Revenues & Expenses
4. 3. Owner's equity & drawings
5. How to calculate
5.1. Assets - Equity = Liabilities
6. Types of liabilities
6.1. -Long term payable (over 15 years) -Short term payable (within a year)
7. How to calculate O.E. & Drawings
7.1. Assets - liabilities = equity, no equation for drawings
8. Other terms for Owner's equity
8.1. - Capital - Owner’s equity - Net worth
9. Where to find
9.1. Drawings : Journal entries, T accounts, Trial balance, and balance sheet
9.2. Equity : Journal entries, T accounts, trial balance, and balance sheet
10. What is revenue and expenses?
10.1. Revenue - The increase of equity from the proceeds of a completed service or products sold (the antonym of expense). Expense - The reduction of equity resulting from the purchase of material to perform a service used to produce revenue. (the antonym of revenue)
11. How to calculate
11.1. Number of products sold x sales price = revenue
13.1. Revenue: Journal entries, T-accounts, Trial balance, income statement Expenses: Journal entries, T-accounts, trial balance, income statement
14. What is an asset?
14.1. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit. (What you own)
15. 1. Assets
16. How to calculate
16.1. Equity + liabilities = Assets
17. Types of Assets
17.1. Fixed Assets - long term economic resources (I.E: plants, equipment, buildings)
17.2. Financial Assets - Investments in the assets and securities of other establishments (I.E: stocks, sovereign, corporate bonds)
17.3. Current Assets - short term economic resources that can convert into cash within a year (I.E: bank, accounts receivable, inventory)
