Types of Major Accounts Part 2 Flashcards
interest imcurred but not yet paid
Interest Payable
salaries are earned by employees but not yet paid by the business
Salaries Payable
utilities already used but not yet paid
Utilities Payable
items related to income that was collected in advance before they were earned
Unearned Income
the residual amount after deducting liabilities to assets
Owner’s Capital
this account is used to record the temporary withdrawals of the owner during the period
Owner’s Drawing
revenues earned from rendering services
Service Fee
revenues earned from the sales of good
Sales
revenues earned from the issuance of interest-bearing receivables
Interest Income
income that is earned from the sales of assets, except inventory
Gains
represents the value of inventories that have been sold during the accounting period
Cost of Sales or Cost of Good Sold
represents the seller’s cost in delivering the goods to the customers
Freight- out
represents the salaries earned by the employees by the services they have rendered
Salaries Expense
represents the rentals that have been used up during the accounting period
Rent Expense
the cost of utilities that have been used during the accounting period
Utility Expense