 each of these accounts and kind of imagine what's going to be happening as we go forward, as we do the data input. The most complex account or the one that has the most activity is the checking account. The checking account is going to be the cash is the lifeblood of the company. So there's more different kinds of transactions going through the cash account than any other type of account. In other words, if I look at my flowchart, this is the QuickBooks desktop flowchart, but I'm just using it as a reference to see the flow of forms typically in any accounting system. If you're looking at the vendor cycle, whether you're on a cashed basis or on an accrual basis, the end of the cycle will be decreases to the checking account. If you're looking at a customer cycle or revenue cycle, no matter if you're on a cash or accrual basis, the end of the cycle will be an increase to the checking account typically. And then if you're looking at a payroll cycle, the end of the cycle will be a decrease to the checking account. So cash is going to be obviously involved. There's more stuff going on with cash than any other account. In practice, you might have your cash connected to the bank feeds as well. We'll talk about bank feeds in a future course or section, but you want to understand what forms are going in and out of the checking account and we'll get a better grasp of that as we start to do a couple months of data input. The accounts receivable is an account specific to tracking people that owe you money. So there's much less kind of stuff that's going to be happening with the accounts receivable. It's going to go up when you issue invoices and then it's going to go down when you receive payment on those invoices. The inventory account here is going to be something that is specific to the type of industry that sells inventory and it gets more complex as we saw in the past, depending on how you're tracking that inventory on a perpetual method or a periodic method. We're going to be using the perpetual inventory method, the most complex one to set up here. And we're going to have a sub ledger for that inventory. So inventory goes up when we purchase inventory. It goes down when we sell the inventory with either an invoice or a sales, a money out form. And then the furniture and fixture note that these things, you can think of them as kind of like expenses that we were forced to put on the balance sheet as an asset because of the big distinction or difference between when we consume them to help us generate revenue and when we pay for them or when we purchase them, whether we pay cash or finance them. So in other words, if I bought supplies that are under a certain dollar amount, I probably are just going to expense them. But if I buy a forklift, then you would say, well, I can't just expense it in month one. I have to put it on the books as an asset. If I want any kind of comparability between one month or year and another month or year, because if I expense it in one year and I use it for 30 years, it's not really fair comparison on a year by year or month by month. And the United States were forced to do that as well. This isn't a cruel thing to do as opposed to a cash thing to do. And we're forced to do that when we get to our taxes. The nice thing about the furniture and equipment is that we don't do it. We don't buy furniture and fixture or any property plants and equipment or fixed assets all the time. We only do it every once in a while. So there shouldn't be a lot of activity in this account typically as compared to accounts receivable or inventory if we use inventory and accounts receivable or of course, the cash account. So it's a lot more static that way. So that makes the accounting for it a little bit easier in some ways. Then we've got the accounts payable. This is an accrual account as well. We would only be using it if we're tracking the accounts payable. If you're a small business, you might just be paying for things as they come due and not putting them into the accounts payable, but rather just using bank feeds and paying things as they become due. But as cash management becomes more important, then the accounts payable becomes more important to track. We've got the credit card. The credit card, of course, is stuff that we purchase on the credit card. It is similar to a bank account because we're running this through a financial institution. So we could track this in practice with bank feeds as well. And that's quite common and could be quite useful because the bank feeds are going to come through as we pay for things and we can allocate them to expenses. We'll talk about bank feeds more in a future course or section. And then we've got the loan payable, which represents us borrowing money, which is fairly