6 types of Accounts
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Revenues
A transaction that increases assets in the business (sales is a revenue account)
Expenses
A transaction that uses up assets or decreases liabilities of the business
Assets
Anything of value owned by the business under its control and can be used by it in the future
Liabilities
Debts or obligations of the organization ( doesn't always have to be cash)
Dividend
Payment(s) to the owners out of retained earnings. (Decreases the owner's equity)
Retained earnings
Profit made in the past that is kept in the business
Stock
Shows who owns part of the business
Owners equity
The owner's interest in the business (the amount of the business owned by the owner) A. Retained earnings B. Stock
