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Flashcards in The Accounts Deck (19):
1

Current Assets

-cash
-investment in short-term securities
-accounts receivable
-inventory
-supplies
-prepaid
-prepaid insurance
-interest receivable(watch due date)


2

Long Term Assets

-notes receivable-watch date
-building and equipment
-land
-investment in long-term securities
-intangible assets(patents, trademarks, copyrights, and goodwill)

3

Current Liabilities

-Accounts payable
-Unearned revenue
-Interest payable
-Rent payable
-Dividends payable
-Salaries payable
-wages payable
-Income taxes payable

4

Long-term liabilities

-notes payable
-mortgages payable
-bonds payable

5

Cash

-current asset

includes forms of money, coins, paper bills, checks, electronic transfer funds, money orders etc...

-it can be in checking accounts, savings, company vault, cash registers etc.

6

Accounts Receivable

Current asset

-amount due to creditors or suppliers for merchandise purchased or services received

7

Notes payable

-current or long term liability dependent on due date

-amount due to bank or other financial institution for loan businesses obtained.

-business is the borrower

-formal borrowing of money

there is interest expense and interest expense leads to interest payable

8

Notes Receivable

current or long term asset

-if a business has a note payable then the bank has a note receivable

-this the formal lending of money

-will have interest rate

9

Land,building,equipment

-long term assets

-these assets are owned by the business

-when they are used the business has depreciation expense


-if not owned the business have a rent expense

10

Dividends

an amount a corporation pays to stockholders resulting from profits
-it reduces retained earnings and shows up as a deduction
-dividends payable occur when the corporation had promised dividends but not yet sent the money

dividend revenue is a revenue account. it is on the income statement of the shareholder. The shareholder will then pay taxes on it.

11

Common Stock

-it is a representation of stockholder's investments in a business

-one of the sources for funding assets

12

Supplies

-current asset

-such as office supplies

13

Supplies Expense

-expense account

-office supplies that have been used and consumed

14

Inventory

-current asset

-merchandise for resale
-sometimes called merchandise inventory

15

Costs of goods sold

-expense account

-cost of selling inventory
-use of an asset creates an expense

16

Prepaid Insurance

-asset either current or long term

-an insurance premium paid by a business covering future periods

-as times passes insurance coverage is used up which creates the insurance expense

17

Unearned Revebues

liability either current or long term

-business receives money in advance of performing a service so it is now in debt to provide the service or return the money

-as the business performs the service it will then have revenue

18

Revenues

the performance or rendering of a service results in revenue

19

gain or loss on the sale of an asset

-revenue account

-refers to profits on selling assets other than inventory