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Blevins Acct Ch 5

Blevins - Ch 5 Transactions that effect revenue, expenses, and withdrawals

Capital Accounts Shows the amount of the owner's investment, or equity, in a business.
Revenue Accounts Record Business income only
Temporary Capital Accounts Are used to record information for only one accounting period
Expense Accounts Are used to record the costs and services used by a business.
Revenue Recognition Principle Recognizing and recording revenue on the date it is earned even if cash has not been received on that date.
Withdrawal An amount of money taken out of the business by the owner.
Permanent Accounts Accounts that are used to record information continuosly from one accounting period to the next
Created by: sblevins