Enterprises - micro, small, medium

Elements of a financial statement - Asset, Liability, Equity, Income, Expense

Debit - Normal balance of asset , expense, drawings

Credit - Normal balance of liability , equity, income,

Double-entry system - Credit, Debit

current assets (5)

1. Cash
2. Cash receivable
3. Inventory
4. prepaid expense

non-current assets (3)

1. Insurance
2. PPE
3. Intangibles

current liabilities (5)

1. accounts payable
2. notes payable
3. accrued liabilities
4. unearned revenues
5. current portion of a long-term debt

types of income
Service income
Sales

types of expense
Cost of sales
Salaries
Utilities
Rent
Supplies
Insurance
Depreciation
Uncollectable accounts
Interest

Income - increase in assets/ decrease in liabilities, that result in increases in equity, other than
those relating to contributions from holders of equity claims
Expense - decrease in assets/ increase in liabilities, that result in decreases in equity, other than
those relating to distributions to holders of equity claims