6 types of Accounts

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