INTRO TO ACCOUNTING

• Accounting - An art of recording , classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part or at least, of financial character and interpreting the results thereof.
• Accounting - Considered the language of business – medium of communication between a business firm and other parties.
• ASSETS – property or rights on property owned
• Current assets – cash and other assets expected to become cash, sold, consumed during the regular operating cycle of the business or one year.
• Cash – coins, currencies, bank checks, bank deposits; Cash on hand, cash in bank
• Accounts Receivable (A/R) – collectibles from customers/clients & other persons for money or goods received on credit bases.
• Notes Receivable (N/R) – collectibles from customers/clients who issue promissory notes in exchange for goods or services received
• Interest Receivable (I/R) – added collectibles from notes receivable
• Merchandise Inventory (MI) – stocks of goods to be sold; Current Assets
• Prepaid expenses – advance payments made for benefits or services that the business will receive or use in the future
• Trading securities-investments in stocks of other companies
• Non-current Assets , Plant Assets, or Fixed Assets- needed to support the operation of the business.