Important+Accounting+Terms

I've started this table of accounting terms and definitions. Please add to the list and feel free to add to or edit any definition to correct it or make it more complete.

 * Accrual basis accounting || An accounting system that recognizes revenue when earned and matches the expenses with the revenue they helped generate. ||
 * Asset || Something of value to a firm, shown on the balance sheet. Examples: cash, accounts receivable, property-plant-and-equipment ||
 * Liability || Amounts the firm owes to its creditors, shown on the balance sheet. Examples: accounts payable, notes payable, unearned revenue ||
 * Equity || Usually called shareholders' equity or owners' equity, it is the owners' claims to the assets of the firm and appears on the balance sheet. Examples: Common stock, retained earnings. ||
 * Revenue || Amounts the firm has earned, shown on the income statement. ||
 * Expenses || Costs the firm has incurred (used) to earn revenue. ||
 * Net income || Revenues minus expenses; one of the four basic financial statements ||