1.   Assets—resources owned or controlled by a company that have future economic benefit.  Examples include Cash, Accounts Receivable, Note Receivable, Prepaid Expenses, Prepaid Insurance, Office Supplies, Store Supplies, Equipment, Buildings, and Land.

2.   Liabilities—claims (by creditors) against assets, which means they are obligations to transfer assets or provide products or services to others.  Examples include Accounts Payable, Note Payable, Unearned Revenues, and Accrued Liabilities.

a.   Unearned revenue—revenue collected before it is earned; before services or goods are provided.

b.   Accrued liabilities—amounts owed that are not yet paid.

3.   Equity—owner’s claim on company’s assets is called equity or owner’s equity.  Examples include Owner’s Capital, Owner’s Withdrawals (decreases in equity). Revenues (results from providing goods or services; i.e. Sales, Fees Earned) increases equity. Expenses (results from assets or services used in operation; i.e. Supplies Expense) decreases equity.