Future Profit - WHS Accounting

The Westwood Schools Introduction to Accounting Course taught by Mrs. Davis.

This is where we will post our daily topics of discussion and invite business leaders to contribute and share with the class as we learn about accounting.

Monday, August 14, 2006

Scribe Post for August 14, 2006

Terms to know:

Sole Proprietorship: a business owned by a single person. Your business and personal books must be kept separate.

An asset is something you own.
The total amount a business owes is liability.
Assetsliability= owner’s equity

Examples:
Asset: vehicles
*most common: checking account

Liability: credit card debt

Owners Equity: what is left over for you.
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Accounting Equation:

Assets = Liabilities + Owner’s Equity

Assets - Liabilities = owner’s equity

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