Accounting equation e. The basic tool of accounting, stated as Assets = Liabilities + Equity 2. Asset a. An economic resource that is expected to be of benefit in the future 3. Balance sheet i. Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date 4. Expense f. Decreases in equity that occur in the course of selling goods or services 5. Income statement ▼ 6. Liability b. Debts that are owed to creditors 7. Net income d. Excess of total revenues over total expenses 8. Net loss c. Excess of total expenses over total revenues 9. Revenue g. Increases in equity that occur in the course of selling goods or services 10. Stmt. of cash flows h. Reports on a business's cash receipts and cash payments during a period 11. Stmt. of ret. earnings

Accounting Equation = The basic tool of accounting, stated as Assets = Liabilities + Equity
Asset = An economic resource that is expected to be of benefit in the future
Balance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date
Expense = Decreases in equity that occur in the course of selling goods or services
Income statement = Reports on an entity's revenues, expenses, and net income or loss for the period
Liability = Debts that are owed to creditors
Net income = Excess of total revenues over total expenses
Net loss = Excess of total expenses over total revenues
Revenue = Increases in equity that occur in the course of selling goods or services
Stmt. of cash flows = Reports on a business's cash receipts and cash payments during a period
Stmt. of ret. earnings = Reports how the company's retained earnings 'balance changed from the beginning to the end of the period

Explanation:

Accounting Equation = The basic tool of accounting, stated as Assets = Liabilities + Equity
Asset = An economic resource that is expected to be of benefit in the future
Balance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date
Expense = Decreases in equity that occur in the course of selling goods or services
Income statement = Reports on an entity's revenues, expenses, and net income or loss for the period
Liability = Debts that are owed to creditors
Net income = Excess of total revenues over total expenses
Net loss = Excess of total expenses over total revenues
Revenue = Increases in equity that occur in the course of selling goods or services
Stmt. of cash flows = Reports on a business's cash receipts and cash payments during a period
Stmt. of ret. earnings = Reports how the company's retained earnings 'balance changed from the beginning to the end of the period