Term
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Definition
Revenues - Expenses = Net Income
Totals should equal (balance) |
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Term
| Statement of Owner's Equity |
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Definition
Owner's Capital (beginning period)+
Investments by Owner +
Net Income = Subtotal - Withdrawals = Owner's Capital (end period) |
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Term
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Definition
Assets (left)
Liabilities (top-right)
Owner's Equity (bottom-right) |
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Term
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Definition
Accounts | Debit | Credit
Totals should equal (balance) |
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Term
|
Definition
| Revenues must be assigned to the accounting period in which the goods are sold or the services performed, and expenses to the accounting period in which they are used to produce revenue. |
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