PERFORM KEY BOOKKEEPING TASKS Flashcards
are the resources owned and controlled by the firm.
Assets
Asset classified according to Physical Existence
a. Tangible Assets
b. Intangible Assets
are assets with physical existence (we can touch, feel, and see them) such as cash, supplies, furniture & fixtures, building and equipment.
a. Tangible assets
are assets that lack physical existence such as copyright, patents, trademarks and goodwill.
b. Intangible Assets
Assets classified according to Convertibility
a. Current assets
b. Non-current assets
are assets that can be easily converted into cash and cash equivalents (typically within a year) like cash, short-term deposits, accounts receivable, inventory and supplies.
a. Current assets
are assets that cannot be easily and readily converted into cash and cash equivalents like building and machinery.
b. Non-current Assets
are obligations of the firm arising from past events which are to be settled in the future.
Liabilities
Liabilities classified according to its due date:
a. Current Liabilities
b. Non - current Liabilities
falls due (paid, recognized as revenue) within one year after year-end date like Accounts Payable, Notes Payable, Accrued Expenses . Unearned Income
a. Current liabilities
are liabilities that do not fall due within one year like Loans Payable and Mortgage Payable.
b. Non-Current Liabilities
Owner’s claims in the business. It is the residual interest in the assets of the enterprise after deducting all its liabilities.
Equity or Owner’s Equity
Equity or Owner’s Equity 2 types
- Capital
- Drawing
Increase in economic benefits during the accounting period in the form of inflows of cash or other assets or decreases of liabilities that result in increase in equity.
Income
Income includes __________ and ___________.
Revenue & Gains
