Terms In Financial Statement Flashcards
This is the amount of actual money business has at its disposal
Cash
Includes coins, currencies, money orders, bank checks, bank deposits and other cash accounts that are available for business operations.
Cash
If cash is in the office premises, it is termed as;
Cash on hand
Cash deposited in the bank
Cash in bank
Collectibles from customers, clients, and other persons for money, goods, or services provided by the business on credit basis
Accounts receivable
This kind of receivable has no added interest
Accounts receivable
These are collectibles from customers or clients, who issued promissory notes in exchange for goods or services received, and as evidence of their obligation to pay the business.
Notes receivable
Usually, this kind of receivable has added interest
Notes receivable
These are added collectibles from notes receivables
Interest receivable
These are the available stocks of goods to be sold to consumers or customers
They are classified as current assets because these good when sold will either become cash if sold on a cash basis or accounts receivable if sold on credit basis, this is only applicable for merchandising and manufacturing business
Merchandise inventory
Advanced payments made for benefits or services that the business will receive or use in the future
Prepaid expenses
Investments in stocks of other companies
Can be sold to other parties in exchange for additional cash
Trading securities
These type of current assets gain profits in the form of dividends
Trading securities
Current liabilities
Accounts payable
Notes payable
Salary payable
Interest payable
Taxes payable
Utilities payable
Obligations or debts to creditors that are not evidenced by a written promise to pay
Accounts payable
Unpaid promissory notes given to creditors for money borrowed merchandise and/or other assets brought on credit
Notes payable
Amounts owed to employees for services they have already rendered
Salaries payable
This is the interest incurred in the current period but is not paid yet
Interest payable
These are expenses from the current period that have yet to be paid as of the balance sheet date.
Taxes payable
Liabilities to pay utility companies for telephone, electricity, and water services used by the business
Utilities payable
Current assets
Cash or check
Accounts receivable
Notes receivable
Interest receivable
Merchandise inventory
Fixed assets
Prepaid expense
Trading securities
