Accounting Equation: | |||||
Assets = Liabilities + Owner's Equity | |||||
Review of normal balances for the accounting elements: | |||||
Assets | Liabilities & Equities | ||||
Normal | Normal | ||||
(increase) | (increase) | ||||
Expenses | Revenues | ||||
Normal | Normal | ||||
(increase) | (increase) | ||||
Losses | Gains | ||||
Normal | Normal | ||||
(increase) | (increase) | ||||