Major Accounts Flashcards
(38 cards)
Assets
are the resources owned and controlled by the firm.
Liabilities are obligations of the firm arising from past events which are to be settled in the future.
Owner’s Equity
Owner’s Equity are the owner’s claims in the business. It is the residual interest in the assets of the enterprise after deducting all its liabilities.
Income
Income is the increase in economic benefits during the accounting period in the form of inflows of cash or other assets or decreases of liabilities that result in increase in equity. Income includes revenue and gains.
Expenses
Expenses are decreases in economic benefits during the accounting period in the form of outflows of assets or incidences of liabilities that result in decreases in equity.
Current Assets
Current Assets are assets that can be realized (collected, sold, used up) one year after year-end date. Examples include Cash, Accounts Receivable, Merchandise Inventory, Prepaid Expense, etc.
Non-current Assets
Non-current Assets are assets that cannot be realized (collected, sold, used up) one year after year-end date. Examples include Property, Plant and Equipment (equipment, furniture, building, land), long term investments, etc.
Tangible Assets
Tangible Assets are physical assets such as cash, supplies, and furniture and fixtures.
Intangible Assets
Intangible Assets are non-physical assets such as patents and trademark
Current Assets
- Cash
- Accounts Receivable
- Supplies
- Notes Receivable
- Inventory
- Prepaid Expenses
- Accrued Income
Cash
Cash is money on hand, or in banks, and other items considered as medium of exchange in business transactions.
Accounts Receivable
Accounts Receivable are amounts due from customers arising from credit sales or credit services.
Notes Receivable
Notes Receivable are amounts due from clients supported by promissory notes.
Supplies
Supplies are items purchased by an enterprise which are unused as of the reporting date
Prepaid Expenses
Prepaid Expenses are expenses paid in advance. They are assets at the time of payment and become expenses through the passage of time.
Accrued Income
Accrued Income is revenue earned but not yet collected
Short term investments are the investments made by the company that are intended to be sold immediately
Non-Current Assets
Property, Plant and Equipment are long-lived assets which have been acquired for use in operations.
Long term Investments are the investments made by the company for long-term purposes
Intangible Assets
Intangible Assets are assets without a physical substance. Examples include franchise and copyright.
Liabilities
Liabilities are the debts and obligations of the company to another entity.
Current Liabilities
Current Liabilities. Liabilities that fall due (paid, recognized as revenue) within one year after year-end date. Examples include Accounts Payable, Utilities Payable and Unearned Income.
Non-current Assets
Non-current Assets are liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date. Examples include Notes Payable, Loans Payable, Mortgage Payable, etc.
Accounts Payable
Accounts Payable are amounts due, or payable to, suppliers for goods purchased on account or for services received on account.
Notes Payable
Notes Payable are amounts due to third parties supported by promissory notes.
Accrued Expenses
Accrued Expenses are expenses that are incurred but not yet paid (examples: salaries payable, taxes payable)
Unearned Income
Unearned Income is cash collected in advance; the liability is the services to be performed or goods to be delivered in the future.
