ACCOUNTING PART 2 Flashcards
- These are debts or obligations that have expected payment due within the regular operating cycle of a single
year.
Current Liabilities
not evidenced by a written promise to pay
ACCOUNTS PAYABLE
- unpaid promissory notes
N/P
- amounts owed to employees for services they have already rendered.
SALARY /P
interest incurred in the current period but is not yet paid
INTEREST/P
- expenses from the current period that have yet to be paid as of the balance sheet date
TAXES/P .
- liabilities to pay utility companies for telephone, electricity, and water services used by the business.
UTILITIES/P
debts a company owes third-party creditors that are payable beyond 12 months.
Long-term Liabilities or Non-Current liabilities
These are amounts of promissory notes that have not been repaid.
N/P
amounts borrowed by the business from banks or financial institutions.
LOANS/P-
– a property has been given as security or collateral
MORTAGE/P
- long-term contracts of indebtedness payable usually from 5-10 years
BONDS/P
the excess of assets over liabilities of the
business, the single owner’s total equity in the firm’s assets;
synonymous to owner’s capital, net asset, and net worth
OWNER’S EQUITY (OE)
OWNER’S EQUITY (OE)
- Owner’s capital
- Drawing or Owner’s Personal
represent the inflow of cash or other
assets from clients or customers for services performed or for goods
sold by the business.
REVENUES OR INCOME
represent consumption of assets
or utilization of services of other
business entities to generate
revenues.
Expenses
used to record the owners investment or share in a business
OWNERS CAPITAL
recording of withdrawals of the owner for her personal use
OWNERS PERSONAL
total sales priced of the merchandise sold
merchandised sales
rendered service from professional
revenues from fee
rental earned on a property
rent income
enterprise will render service
service income
amount earned for lending money
interest income
EXPENSEs
- Salaries expenses
- Commission expenses
- Traveling expenses
- Postage and communication
expenses - Taxes expenses
- Utilities expenses
- Insurance expenses
- Repair and maintenance exp.
- Rent exp
- Interest exp
- Advertising exp
- Depreciation exp
- Misc. exp
