Account Titles

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ACCOUNT TITLES



ASSET ACCOUNT Current Asset

Cash – includes coins, currency, checks

Investment in Trading Securities – debt and equity

securities purchased with the intention of selling themin the near future in order to generate short-term gainsor profits.

Notes Receivable – claims from customers evidenced by

formal promises to pay usually in the form of notes. Accounts Receivable – claims from customers arising

from sale of goods or services in the ordinary course of business.



ASSET ACCOUNT Current Asset

Accrued Income – income already earned not yetcollected ( e.g. Rent receivable, interest receivable)

Advances to Employees – cash advance made by employee

Prepaid expenses – expenses already paid but not yetincurred (e.g. Office supplies, prepaid rent, prepaidinsurance, etc)



ASSET ACCOUNT Property, Plant & Equipment

Land

Building Office Equipment

Furniture & Fixtures

Transportation Equipment



LIABILITY ACCOUNT Current Liabilities

Notes Payable – amount owed to creditors evidenced by a written promise to pay

Accounts Payable – amount owed to creditors

Accrued Expenses – expenses already incurred but not yet paid (e. g. salaries payable, interest payable, rentpayable, utilities payable

Unearned Revenue – revenue already received not yetearned



LIABILITY ACCOUNT Non-current Liabilities

Mortgage Payable – long-term debt of the business for which the business has pledged certain assets as security to the creditor

Bonds Payable – bonds issued to lenders to finance theacquisition of equipment and other needed assets.



EQUITY ACCOUNTOwner’s Capital – a traditional

accounting term to refer to the

resources invested by the owner.

Owner’s Drawing – used to record

temporary withdrawal of cash or non-cash assets made by the owner

Documents

Account Titles