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