LESSON 2: Bookkeeping Elements and Account Titles for a Merchandising Business (ASSETS, LIABILITIES & OWNER'S EQUITY) Flashcards
● UNIVERSAL LANGUAGE when identifying
business transaction.
● Aids in identifying items appropriately and
further ENHANCE UNDERSTANDING of a
transaction done.
BOOKKEEPING ELEMENTS
Properties owned by the
business for the purpose of
use and growth of a business
ASSETS: OWNS of the BUSINESS
Currency on hand and money in banks, and
in other forms (digital , checks, card) under
the name of the company
CASH
Amounts or CLAIMS from
CUSTOMERS resulting from services
rendered by the company or by SALES
OF MERCHANDISE.
ACCOUNTS RECEIVABLE
Amounts or claim from CUSTOMERS
which are expressed through a
PROMISSORY NOTE.
NOTES RECEIVABLE
Supplies that are intended for
business use. May be OFFICE
SUPPLIES or STORE
SUPPLIES
SUPPLIES (OFFICE/ STORE)
Equipment that are intended
for business use. May be
OFFICE EQUIPMENT or
STORE EQUIPMENT
EQUIPMENT (OFFICE/ STORE)
Cabinets, tables, chairs, and
light fixtures in the building.
FURNITURE AND FIXTURES
Financial obligations
of the business owed to involved party
which usually must be paid on
a specific date.
LIABILITIES: OWES of the BUSINESS
Amounts owed to creditors for
purchase of merchandise or
services received.
ACCOUNTS PAYABLE
Amounts expressed in
PROMISSORY NOTE to pay the
creditor on a specified date.
NOTES PAYABLE
The owner’s interest in the business which
consists of the invested capital and results
of operations whether
gained or lost.
OWNER’S EQUITY : OHS of the
BUSINESS
Amounts or values of
contributions of the owner to
the business.
OWNER’S CAPITAL
Amounts withdrawn by the owner from
the assets of the business for personal
use.
OWNER’S DRAWING
