POA chapter 3

• what is the basic accounting equation?

  assets + liabilities + owner's equity
• define assets?

  resources a business owns or controls that are expected to provide future benefits
• define liabilities?

  obligations owed by a business to others that are expected to be settled in the future
• define equity?

  claim by the owner on the net assets of a business
• define income?

  amounted earned from the activities of a business
• define expenses?

  costs incurred to earn income in the same accounting period
• what are the 5 names?

  assets, liabilities, owner's equity, income, expense