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
