Accounting Equation

2. Payable Money a business owes to its suppliers for goods or services purchased on credit.
4. The income generated from normal business operations, such as sales of goods or services.
7. Obligations or debts that a business owes to outsiders. These are claims on the business's assets by creditors. Examples include accounts payable, loans, and mortgages.
8. Long-term obligations that are not due within the next year. Examples include long-term loans, bonds payable, and deferred tax liabilities.
9. Represents the funds contributed by the owners.
10. Assets that are expected to be converted into cash or used up within one year. Examples include cash, accounts receivable, and inventory.

1. Resources owned by a business that are expected to bring future economic benefits. Examples include cash, accounts receivable, inventory, property, and equipment.
2. Receivable Money owed to a business by its customers for goods or services sold on credit.
3. Obligations that are expected to be settled within one year. Examples include accounts payable, short-term loans, and accrued expenses.
5. Long-term investments that are not expected to be converted into cash within a year. Examples include property, plant, equipment, and intangible assets like patents.
6. The costs incurred in the process of earning revenue, such as salaries, rent, and utilities.