major accounts

• Account


  A place where we can record, sort and store all transactions that affect a related group or items.
• Assets


  Resources owned by the company.
• Liabilities


  Debt owed by the company.
• Owner's Equity


  Residual interest of the owner.
• Major Accounts

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenue
  • Expenses
• Current Assets


  Assets that can be realized one year after year end date.
• Examples of current assets are cash, accounts receivable, machine inventory, prepaid expense.
• Non-Current Assets


  Assets that cannot be realized one year after year-end date.
• Examples of non-current assets are properties, plant and equipment, long term investment.
• Tangible Assets


  Physical assets
• Examples of tangible assets are cash, supplies, furniture and fixtures.
• Intangible Assets


  Non-physical assets.
• Examples of intangible assets are patent and trademarks.
• 4 Types of Assets

  • Current Assets
  • Non-Current Assets
  • Tangible Assets
  • Intangible Assets
• Cash


  Money or hand, or in banks and other items considered as medium of exchange in business transactions.
• Accounts Receivable


  Amounts due from clients arising from credit sales or credit services.
• Notes Receivable


  Amounts DUE FROM the clients supported by promissory notes.
• Inventories


  Assets held for resale.
• Supplies


  Items purchased by an enterprise which are unused as of the reporting date.
• Prepaid Expenses


  Expenses paid in advance. They are assets at the time of payment and become expenses through the passage of time.
• Accrued Income


  Revenue earned but not yet collected.
• Equipment


  Represents manual or automated machines used in the business.
• Buildings


  Physical structure owned and used by the business to conduct it business operations.
• Land


  The physical site owned by the business where the building is situated. Not subject to depreciation.
• Allowance for Doubtful Accounts


  A portion of accounts receivable that is estimated to be noncollectable at the end of a particular accounting period.
• Furniture and Fixtures


  Represents assets such as tables, chairs, filing cabinets, and display racks.
• Accumulated Depreciation


  Aggregate portion of the total cost of property, plant, and equipment that has been subject to depreciation.
• Current Liabilities


  Liabilities that fall due within one year after end date.
• Non-Current Liabilities


  Liabilities that fall due more than one year end date.
• Accounts Payable


  Amounts due, payable to, suppliers on account or for services received on accounts.
• Notes Payable


  Amounts DUE TO third parties supported by promissory notes.
• Accrued Expenses


  Expenses that are incurred but not yet paid.
• Unearned Payable


  Cash collected in advance, the liability is the services to be performed or goods to be delivered in the future.
• Loans Payable


  refers to open accounts which represent the amount of money owed by the business to creditors or suppliers.
• Mortgage Payable


  Represents the amount of money borrowed by the business from a bank or a lending institution which is secured by collateral.
• Capital


  Value of cash and other assets invested in the business by the owner of the business.
• Drawing


  An account debited for assets withdrawn by the owner for personal use from the business.
• Revenue


  Also known as income.
• Revenue


  The increase in resources resulting from performance of services or selling of goods.
• Service Revenue


  Refers to the earning made by any business that is rendering services.