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What is one way to categorize theories?
Equipment
Tangible assets used in the operations of a business, often having a useful life longer than one year.
Accumulated Depreciation
The aggregate depreciation charged against a tangible asset over its useful life to represent wear and tear.
Income Summary
An account used in the closing process that summarizes the revenues and expenses for a fiscal period, determining the net income or loss.
Owner's Capital
The total value of equity that a business owner has invested in their company, which may increase through profits or additional contributions.
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