Accounts Cheat Sheet

Balance Sheet Accounts

1-xxxx Asset Account - Anything you own that has value. E.g., Checking, Accounts Receivable, Inventory, Fixed Assets (furniture, computers, etc)

  • DEBIT increases
  • CREDIT decreases

2-xxxx Liability Account - Money you owe. E.g., Accounts Payable, Credit Cards, Taxes, Loans

  • DEBIT decreases
  • CREDIT increases

3-xxxx Owner's Equity Accounts. E.g., Retained Earnings, Current Year Earnings, Historical Balancing

  • DEBIT decreases
  • CREDIT increases

On the Balance Sheet:
Assets = Liabilities + Owner's Equity

Profit & Loss or Income Statement Accounts

4-xxxx Income Accounts. E.g., Money received from sales or other sources

  • DEBIT decreases
  • CREDIT increases

5-xxxx Cost of Goods Sold Accounts. E.g., Expenses incurred to purchase an item or make an item sold

  • DEBIT increases
  • CREDIT decreases

6-xxxx Expense Accounts. E.g., Expenses such as rent, office supplies, wages, etc.

  • DEBIT increases
  • CREDIT decreases

On the Income Statement (Profit and Loss Statement):
Income − Cost of Goods Sold − Expenses = Profit or (Loss)

For a downloadable reference sheet please click here.