typical accounts (accounting)

• ASSETS

  • current assets
  • non-current assets
• CURRENT ASSETS

  • cash
  • cash equivalents
  • notes receivable
  • accounts receivable
  • inventories
  • prepaid expense
• NON- CURRENT ASSETS

  • property, plant and equipment
  • accumulated depreciation
  • intangible assets
• LIABILITIES

  • current liabilities
  • accounts payable
  • notes payable
  • accrued liabilitied
• CURRENT LIABILITIES

  • unearned revenues
  • current portion of long-term debt
• NON- CURRENT LIABILITIES

  • mortgage payable
  • bonds payable
• INCOME STATEMENT

  • service income
  • sales
• EXPENSE

  • cost of sales
  • salaries or wages expense
  • telecommunications, electricity, fuel and water expenses
  • supplies expense
  • insurance expense
  • depreciation expense
  • uncollectible accounts expense
  • interest expense
• assets= liabilities + equity
• equity= assets - liabilities
• assets = liabilities + equity + income - expense
• THESE FOUR BASIC STEPS :

  • Identify the transaction from source documents
  • Indicate the accountseither assets, liabilities, equity, income or expenses- affected by the transaction.
  • Ascertain whether each account is increased or decreased by the transaction.
  • Using the rules of debit and credit, determine whether to debit or credit the account to record its increase or decrease.
• • Cash Equivalents - highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
• • Notes Receivable - is a written pledge that the customer will pay the business a fixed amount of money on a certain date.
• • Accounts receivable is the money that people owe you because they bought something from you but haven't paid you yet.
• • Inventories - these are the assets which are held for sale in an ordinary course of business or in the form of materials or supplies to be consumed in the production process or in the rendering of services.
• • Prepaid Expense - these are expenses paid for by the business in advance.
• • Accumulated depreciation is the total amount of value that the asset has lost since you first bought it. 
• Accounts payable

  •  the buyer agrees to pay for them in the near future.
• Notes Payable

  • business entity is the party who promises to pay the other party a specified amount of money on a specified future date.
• Accrued Liabilities - amounts owed to others for unpaid expenses.
• • Unearned Revenues - when the business entity receives payment before providing its customers with goods or services, the amounts received are recorded in the unearned revenue account
• • Current Portion of Long-Term Debt - these are portions of mortgage notes, bonds and other long term indebtedness which are to be paid within one year from the balance sheet date.
• • Mortgage Payable - this account records long term debt of the business entity for which the business entity has pledged certain assets as securities to the creditor.
• • Bonds Payable - business organizations often obtain substantial sums of money from lenders to finance acquisition of equipment and other needed assets.
• • Bonds Payable - business organizations often obtain substantial sums of money from lenders to finance acquisition of equipment and other needed assets.
• Salaries or Wages Expense - includes all payments as a result of an employer- employee relationship such as salaries or wages 13th month pay, cost of living allowances and other related benefits.
• • Depreciation Expense - the portion of the cost of a tangible asset allocated or charged as expensed during an accounting period.