ACCOUNT TITLES

LEARNING OBJECTIVES
At the end of the session, you should be able to: 1. Describe each asset account. 2. Describe each liability account. 3. Describe equity account. 4. Give examples of revenue account 5. Give examples of expense account.

ASSET ACCOUNT
Current Asset
Cash includes coins, currency, checks Investment in Trading Securities debt and equity securities purchased with the intention of selling them in the near future in order to generate short-term gains or 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 yet collected ( e.g. Rent receivable, interest receivable) Advances to Employees cash advance made by employee Prepaid expenses expenses already paid but not yet incurred (e.g. Office supplies, prepaid rent, prepaid insurance, 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, rent payable, utilities payable Unearned Revenue revenue already received not yet earned

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 the acquisition of equipment and other needed assets.

EQUITY ACCOUNT
Owners Capital a traditional accounting term to refer to the resources invested by the owner. Owners Drawing used to record temporary withdrawal of cash or non-cash assets made by the owner

INCOME ACCOUNTS
SERVICE INCOME- Income derived from rendering of services -Primary income for service business

 OTHER INCOME- Secondary income for service business (e.g.) - INTEREST INCOME - DIVIDEND INCOME - RENT INCOME - GAIN ON SALE OF EQUIPMENT

EXPENSES
SALARIES ANDWAGES EXPENSE RENT EXPENSE ADVERTISING EXPENSE REPAIR AND MAINTENANCE EXPENSE SUPPLIES EXPENSE INSURANCE EXPENSE REPRESENTATION & ENTERTAINMENT EXPENSE TRANSPORTATION EXPENSE FUEL AND OIL EXPENSE UTILITIES EXPENSE TAXES AND LICENSES EXPENSE

EXPENSES
DEPRECIATION EXPENSE DOUBTFULACCOUNTS EXPENSE MISCELLANEOUS EXPENSE OTHER EXPENSE -LOSS ON SALE OF EQUIPMENT FINANCE COST INTEREST EXPENSE