Asset increases when a company loans money from a bank (cash increases), and liability (note payable) increases. Liability-account payable increases when a company purchases a car for company use (vehicle asset) on account and will be paid end of the month. Owner's Capital increases when the owner invests an amount of money in the business (owner's equity increases), and asset (cash) also increases. Owner's Drawing increases if the owner withdraws an amount of money for personal use, it also decreases owner's equity and the asset (cash) decreases as well. Revenues increase when a company receives a payment from customers and asset (cash increases) Expenses increase if a company pays for advertising services expense and asset (cash) decrease.

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