Owner's Equity“insider claims held by theOwner's equity areowners of the business, also called capitalOwner'smeasuredequitysubtracting1Sliabilities from assets
Owner’s Equity Owner’s equity are “insider claims” held by the owners of the business, also called capital. Owner’s equity is measured by subtracting liabilities from assets
RevenueRevenuethe1Sincreaseinowner's equitygoodscreatedbydeliveringor services tocustomers or clientsRevenuesalescomprisesservicerevenue,interest revenue, and etcrevenue
Revenue Revenue is the increase in owner’s equity created by delivering goods or services to customers or clients. Revenue comprises service revenue, sales revenue, interest revenue, and etc
ExpenseExpense is the cost of operating a businesseffect ofExpenseshave theoppositerevenues, so they decrease owner's equityTheincludeofcommontypesexpensessellingsalaryrentexpenses,expense,expenses,administrativeexpense, financingexpenses,and etc
Expense Expense is the cost of operating a business. Expenses have the opposite effect of revenues, so they decrease owner’s equity. The common types of expenses include selling expenses, salary expense, rent expense, financing expenses, administrative expenses, and etc
Net Income(or Loss)Net income is the difference betweenrevenues and expenses during a givenperiodRevenue-ExpenseNet Income(R> E)三Revenue- ExpenseNet Loss (R<E)三
Net Income( or Loss) Net income is the difference between revenues and expenses during a given period. Revenue – Expense = Net Income( R > E) Revenue - Expense = Net Loss ( R < E)
CaseoneYou start a business and place $10,000in a bank account. The $10,000 in thebank is considered to be an asset. Theequity (financial value) of the businessis equal to its assets
Case one You start a business and place $10,000 in a bank account. The $10,000 in the bank is considered to be an asset. The equity (financial value) of the business is equal to its assets