problem with this is that when we go back to look at the ledger we cannot tell where the changes to OE came from The Need to Expand In order to more accurately measure our increases and decreases in equity we introduce three new types of accounts: Revenue-which are related to the sales of goods and services Expenses- which are the cost related to the revenue Drawings- which are the owner’s withdrawals for personal use Revenues These represent those ANWSER which were caused by when ANWSER Example:…
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