The accounting equation shows the relationship among the three basic accounting
elements¾assets, revenues, and owner’s equity.
Firms are more likely to use a four-column journal account than T accounts.
Compensation for managerial or administrative services usually is expressed in
biweekly, monthly, or annual terms and is called wages.
Employers primarily use the wage-bracket method to determine the amount of tax to be
withheld from an employee’s pay.
The income statement and statement of owner’s equity provide information covering a
period of time.