Consider the following accounting terms and$$ definitions, and match each term to the$$ definition:

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Part $1$

Definition

Accounting equation

The basic tool of accounting, stated as Assets $=$ Liabilities $+$ Equity

Asset

An economic resource that is expected to be of benefit in the future

Balance sheet

Reports on an entity's revenues, expenses, and net income or loss for the period

Expense

Decreases in equity that occur in the course of selling goods or services

Income statement

$$

Liability

Debts that are owed to creditors

Net income

Excess of total revenues over total expenses

Net loss

Excess of total expenses over total revenues

Revenue

Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date

Statement of cash flows

Reports on a business' cash receipts and cash payments during a period

Statement of retained earnings

Report how the company's retained earnings balance changed from the beginning to the end of the period.