ACCOUNTING

ACCOUNT TITLES

Here are some other "Account Titles" that you may encounter.

A/n: Btw Marami pang account titles, depende na yun sa higher years.
So far, mas magandang familiar na kayo dito,kaya ko sinama hehe^_^

I DON'T recommend to MEMORIZE all of this but FAMILIARIZE with the terms

ALWAYS REMEMBER THAT ALL THE ACCOUNTS UNDER ASSET, LIABILITY AND OWNERS EQUITY ARE PART OF THE BALANCE SHEET ACCOUNT/STATEMENT OF FINANCIAL POSITION.

AND ALSO ALL THE ACCOUNTS UNDER INCOME/REVENUE AND EXPENSES ARE PART OF THE INCOME STATEMENT ACCOUNT.

____________________________________________________________________________

                         ASSETS

CASH
– Currency (bills and coins), checks, postal money orders and treasury warrants received by the business.
– Current asset

• The following are the examples of Cash:

* PETTY CASH FUND
– Cash used to pay petty or small amounts.
– Current asset

* CASH ON HAND
– Cash in the possession and custody of the business.
– Current asset

* CASH IN BANK
– Cash that are deposited in the banks.
– Current asset

Investment in Trading Securities 
This refers to short-term, highly liquid investment in securities such as shares and bonds.

Trade and Other Receivables
This refer to the amount collectible from a person or a company.

• The following are the examples of Trade and Other Receivables:

* ACCOUNTS RECEIVABLE
– Amount collectible from clients or customers services rendered or sale of goods.
– Current asset

In general, this account is not supported by promissory notes so that it is often referred to as arising from sales “on open account”.
(Note: When a business does not expect to collect all its receivables, bad debts are provided and the accumulated amount thereof in “allowance for bad debts” is treated as a deduction from receivables.)

* ALLOWANCE FOR DOUBTFUL ACCOUNTS
– A contra-asset account that represents the estimated amount of trade receivables that are doubtful of collection.

* NOTES RECEIVABLE
– Amounts collectible that are covered by promissory notes
– Represents the principal amount or the face value of the promissory note which is held by the payee.
– Current asset

*COMMISSION RECEIVABLE
– Represents the amount collectible from the party who is obliged to give a commission.
– Current asset

* INTEREST RECEIVABLE
– Amount collectible in a loan transaction.
– Current asset

* RENT RECEIVABLE
– Represents the amount collectible from the tenant or the lessee.
– Current asset

* ADVANCES TO ENPLOYEES
– Cash advance to be deducted from the gross salary of the employee.
– Current asset

Merchandise Inventory
– goods acquired for sale and are still unsold
– Current asset

Prepaid Expenses
– expenses to be incurred yet in the future but are already paid.
– Current asset

Examples are Prepaid Rent, Prepaid Interest and Prepaid Insurance.

– expenses of future accounting period(s) that are paid in advance.