ACCOUNTING EQUATION? TYPES OF ACCOUNTS

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The accounting equation is Assets = Liabilities + Equity. Types of accounts include assets, liabilities, equity, revenue, and expenses.

The accounting equation states that Assets = Liabilities + Equity.
Assets are resources owned by the company, such as cash, inventory, and equipment.
Liabilities are obligations of the company, such as loans and accounts payable.
Equity represents the owner's claim on the assets of the business.
Revenue accounts track income generated by the business, such as sales revenue.
Expense accounts track the costs incurred to generate revenue, such as salaries and utilities.
Examples of asset accounts include Cash, Accounts Receivable, and Inventory.
Examples of liability accounts include Accounts Payable, Loans Payable, and Accrued Expenses.
Examples of equity accounts include Owner's Capital and Retained Earnings.

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