1. Chapter 3 Terms and Notes
Revenue-An increase in owner’s equity resulting from the operation of a business.
Expense-A decrease in owner’s equity resulting from the operation of a business.
Withdrawals-Assets taken out of a business for the owner’s personal use.

2. Notes 3
Most businesses must make payments for goods and services provided by public utilities, such as telephone companies. These services are referred to as utilities. It also includes electricity, gas, water, and sanitation.
Few businesses prepare balance sheets everyday. Many businesses prepare balance sheets on the last day of the month. Monthly balance sheets provide management with information to make good decisions.