Term
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Definition
| the amounts of money that a bussiness earns for selling services or good to another firm or individual |
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Term
| Assets + Liabilties + Owners's equity + revenue - expenses |
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Definition
| Assets + Liabilties + Owners's equity + revenue - expenses |
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Term
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Definition
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Term
| when does a bussines EARN revenue? |
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Definition
| at the time it renders the services or goods. not at the time the payment for the services are received |
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Term
| owners's equity account has a normal credit balance |
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Definition
| means the account value increases with a credit entry and decreases with a debit entry |
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Term
| revenue increases owners equity |
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Definition
| because revenue increses net profit |
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Term
| expenses are the cost in money of any good or services |
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Definition
| expenses decrease owners equity because they reduce net profit |
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Term
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Definition
| decrease owner's equity because they reduce net profit |
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Term
| if revenue total is larder then the expense total |
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Definition
| then there is a net profit |
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Term
| if the expenses are larger then the revenues |
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Definition
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Term
| Assets = liablities + owners equity + revenue - expenses |
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Definition
| this formula shows that revenues increase (are added to) owner's equity and expenses decrease ( are subtracted from ) owners equity |
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Term
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Definition
| represent the credit side of the owners equity |
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Term
revenue
credit entries (right side) increase the revenue accounts value |
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Definition
| debits (left side ) decrease the value |
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Term
| revenues increase on the credit or right side |
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Definition
| revenues increase on the credit or right side |
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Term
| revenues accounts always begin and end an accounting period with a 0 balance. |
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Definition
| revenues accounts always begin and end an accounting period with a 0 balance |
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Term
| revenue accounts are temporary accounts |
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Definition
| revenue accounts are temporary accounts |
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Term
| accounts that aren't closed or redused to a 0 balance are permanent or real accounts. |
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Definition
| assets liablilities and owner's equity are examples of real accounts |
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