AAMI Accounting 1 with Verified Solutions

AAMI Accounting 1 with Verified Solutions Assets 100-199 Liabilities 200-299 Owner's Equity 300-399 Revenue 400-499 Expenses 500-599 Assets are: Cash, Accounts Receivables, Furniture/Office Equipment, Buildings, Inventory, Automobiles, Machinery Liabilities are: Accounts Payable, Mortgage Payable, Sales Tax Payable Capitals are: Monies invested by owner, Monies withdrawn by owner Revenue are: Sales/Income/Fees Expenses are: Postage, Advertising, Wages, Overtime, Utilities, Cost of goods purchased for resale Basic Accounting Equation Assets = Liabilities + Owners Equity The Expanded Accounting Equation Assets = Liabilities + Capital in - Withdrawals + Revenue - Expenses Gross Profit Equation Revenue - Cost of Goods sold = Gross Profit Net Profit (Net Loss) Equation Gross Profit - Expenses = Net Profit (Net Loss) Increases to Assets and Expenses are: Debits Increases to Liabilities, Capital and Revenue are : Credits Decreases to Assets and Expenses are: Credits Decreases to Liabilities, Capital and Revenue