As your owner's Equity goes up. you will want to keep track of why it went up (so you can make that same thing happen again and again!). The increase in owner's equity due to completing the activities of a business is referred to as Revenue Expense @ Owner's investment/Common Stock What if you had to use some cash to pay for the item sold (or some other cost related to earning that revenue!). This would DECREASE your assets and stockholder's/owner's equity. That decrease, due to completing the activities of a business is referred to as O Revenue @ Expense O Dividend