IDENTIFICATION Flashcards
(23 cards)
Economic resources owned by business
Assets
Expected to realize in. Entity’s normal operating vycle
Current asset
Include amount collectible
Receivable
Collectibles from customer to whom sale have been made
Account receivables
Promissory note
Note receivable
Interest collectivle from promissory notes. Received from customer
Interest receivable
Unsold goods
Inventories
Long term asset
Not expected to be converted into cash within 1 year
Non current asset (property plant)
Debt, obligation to pay
Liabilities
Payable within n normal operating cycle
Current liabilities
Debt arising from purchase of asset
Account payable
Debt arising from purchase of asset evidence by promisory note
Notes payable
Liability to oay the bank or financial institution
Note : loan is payable beyond 12 month—classified as non current liabilities
Loans payable
Obligation to pay utility companies
Utilities payable
interest of the owener
Owners equity
Original and additional investment of owner if business
Capital
Withdrawal made by owner of the business either cas or asstes
Drawing
Total amount of money business earns
Revenue
Cost that a company incurs during normal business operation
Operating expense
Nature of expense method. Present expenses according to nature
Nature form
Known as the cost sales method. Used in merchandising business
Functional form
Revenue earned by business in performing service a business
Service income
Salari s, utilities, supplies expense
Expenses
