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Joan owns a citrus tree farm near Mesa, Arizona. Joan and her family have fertilized the trees each spring for 52 years. The irrigation for the trees carries the fertilizer remnants into the Salt River. When EPA investigators discover the fertilizer in the Salt River and trace the unique brand to Joan, they indict her for violation of the Clean Water Act, for the discharge of a substance into a waterway. Joan responds, "I didn't know there was fertilizer. I was just letting water flow."
Stockholders' Equity
The residual interest in the assets of a company after deducting liabilities, essentially representing ownership interest.
Expense Accounts
Accounts in the general ledger that are used to record various costs and expenses incurred by a business.
Revenue Accounts
Accounts that track the income a business receives from its various activities, such as sales of products or services.
Loss Accounts
Accounts used to record the loss in value of assets or to represent expenses that reduce net income.
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