Midterm Flashcards
Is a list of all the accounts you use to track money in your business
Chart of accounts
Accounts that you hold at a financial institution such as checking, savings, money, or petty cash account
Bank
The money that your customer owe you,like outstanding invoices and goods purchased on credit
Accounts receivable
Things you own that you’ll use or convert to cash within 12 months, suc as prepaid expenses
Other current asset
Things your company owns that decrease in value overtime, like equipment that wears out or becomes obsolete
Fixed asset
If you wont convert an asset to cash in the next 12 months and it isnt a depreciable asset
Other asset
This is a special type of current liability account that represents what you owe to vendors
Accounts payable
Money you owe in the next 12 months
Other current liability
Money you owe after the next 12 months
Long term liability
The revenue you generate through your main business functions, like sales or consulting services
Incom
The cost ofproducts and materials that you held originally in inventory but then sold
Cost of goods sold
The money you spend to run your company
Expense
Money you receive from sources other than business operations, such as interest income
Other income
Money you pay out for things other than business operations, like interest
Other expense
Quickbooks creates this account auyomatically when you use features such as estimates and purchase orders
Non posting account
