, assets, liabilities, equity, revenues, and expenses. Table 12-1 explains a little about each. Within each of these categories are subaccounts used to classify each entry or transaction. If the organization does business or maintains a presence with resources-people, address, buildings, telephone number, etc.-in more than one location, the system will also have location information in the form of a name and number. Understand- ing this structure is vital to successful management practice in any mid-size or large organization. Communications circuits, equipment facilities, and service are as vital to organizational function as space, heating, air conditioning, ventilation, power, water, and rapidly be- coming more vital than postage. Communications is not just paying the telephone bill anymore. Where there was, and still is in most cases, a simple single line on in the expense category there should now be at least three, and perhaps four, for each department or cost center requiring use of communications in its operation. TABLE 12-1 Assets (1000) Items of value owned. Examples include cash, inventory, and land. Assets are usually tangible, but not always. Liabilities (2000) Debts. Examples include loans and taxes owed. These debts are usually settled by cash payment, but sometimes they are settled by providing a good or service at a later date Equity (3000) Equity represents the owners' interest in the company. Equity accounts include common stock and retained earnings or profits reinvested in the business, as opposed to profits distributed to stockholders as dividends Revenues (4000) Revenue Increases assets when the organizations output is sold or ex- changed for money or otherwise valuable goods and/or services. Examples include sales of equipment, merchandise, or voice and data communica- tions, and any interest earned from investments. Expenses (6000) Expenses decrease assets or increase liabilities when goods and services are acquired and used to fulfill orders and serve customers. There may be literally hu