Glossary

• Asset
  Resources with probable future benefits controlled by the entity.
• Liability
  Present obligations expected to result in an outflow of resources.
• Equity
  Residual interest in the assets after deducting liabilities.
• Debit
  Left side of an account; increases assets/expenses.
• Credit
  Right side of an account; increases liabilities/equity/revenues.
• Accrual
  Recognition of revenue/expense before cash receipt/payment.
• Deferral
  Cash occurs before recognition (prepaids, unearned revenue).
• Contra-asset
  An account that reduces a related asset (e.g., Accumulated Depreciation).