Balance Sheet Accounts

Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owners Equity

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

Profit & Loss or Income Statement Accounts

Income - Cost of Goods Sold - Expenses = Profit or (Loss)

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

7-xxxx NOT APPLICABLE - AccountEdge does not use account numbers that start with 7-

8-xxxx Other Income Accounts - E.g., Income such as interest, purchase discounts, etc.

• DEBIT decreases
• CREDIT increases

9-xxxx Other Expense Accounts - E.g., Expenses such as interest, incentives, etc.

• DEBIT increases
• CREDIT decreases