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 futureBalance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific dateExpense = Decreases in equity that occur in the course of selling goods or servicesIncome statement = Reports on an entity's revenues, expenses, and net income or loss for the periodLiability = Debts that are owed to creditorsNet income = Excess of total revenues over total expensesNet loss = Excess of total expenses over total revenuesRevenue = 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 periodStmt. 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 futureBalance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific dateExpense = Decreases in equity that occur in the course of selling goods or servicesIncome statement = Reports on an entity's revenues, expenses, and net income or loss for the periodLiability = Debts that are owed to creditorsNet income = Excess of total revenues over total expensesNet loss = Excess of total expenses over total revenuesRevenue = 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 periodStmt. of ret. earnings = Reports how the company's retained earnings 'balance changed from the beginning to the end of the period