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((accounting equation, the total of everything owned by a business must…

- - - - creditors claims in assets
      - ex
        
        payable
        
        wages payable
        
        as a liability that promises a future outflow of resurces
        
        taxes payable,
        
        accounts payble
        
        accrued liabilities
        
        amounts that are not yet paid
      - an amount owed to a creditors
      - the company obligations to provide assets, products or services to other
    - - revenues
        
        increase
        
        the sales of product or services to customers by a business
        
        expenses
        
        are the cost necessary to earn revenue
        
        expenses decrease equity
        
        owners investments
        
        cash or other assets an owner puts into the business
        
        increase equity from sales of product and services to customers
        
        owner withdrawals
        
        decrease equity and are the outflows of assets from the company of the owners personal use
      - the accumulated revenues and owners investments minus the accumulated expenses and withdrawals since the company began
      - computed as assets minus liabilities
      - it is claims of the owners on the assets of the business
    - - expected to yield future benefit
      - ex :
        
        supplies
        
        equipment
        
        land, bulding
        
        cash
        
        checks
        
        coin
        
        money orders
        
        checking account balances
        
        accounts receivable
        
        assets that promise a future inflow of resources
        
        notes receivable
        
        also called promissory note
        
        the promisi
        
        prepaid accounts/ expenses
        
        prepaid insurance
        
        prepaid service
        
        prepaid rent
      - resources a company owns or controls