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    Account Titles and Its Elements

    Uploaded by

    Jeb Pampliega
    The document defines key accounting titles used to classify assets, liabilities, owner's equity, income, and expenses. Assets include cash, accounts receivable, inventory, property, and equipment. Liabilities include accounts payable, taxes payable, and salaries payable. Owner's equity consists of owner's capital contributions and withdrawals. Income sources are services, rent, interest, and commissions. Expenses cover salaries, taxes, supplies, rent, and depreciation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Account Titles and Its Elements

    Uploaded by

    Jeb Pampliega
    169 views3 pages
    The document defines key accounting titles used to classify assets, liabilities, owner's equity, income, and expenses. Assets include cash, accounts receivable, inventory, property, and equipment. Liabilities include accounts payable, taxes payable, and salaries payable. Owner's equity consists of owner's capital contributions and withdrawals. Income sources are services, rent, interest, and commissions. Expenses cover salaries, taxes, supplies, rent, and depreciation.

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    Account Titles and its Elements

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    The document defines key accounting titles used to classify assets, liabilities, owner's equity, income, and expenses. Assets include cash, accounts receivable, inventory, property, and equipment. Liabilities include accounts payable, taxes payable, and salaries payable. Owner's equity consists of owner's capital contributions and withdrawals. Income sources are services, rent, interest, and commissions. Expenses cover salaries, taxes, supplies, rent, and depreciation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    169 views3 pages

    Account Titles and Its Elements

    Uploaded by

    Jeb Pampliega
    The document defines key accounting titles used to classify assets, liabilities, owner's equity, income, and expenses. Assets include cash, accounts receivable, inventory, property, and equipment. Liabilities include accounts payable, taxes payable, and salaries payable. Owner's equity consists of owner's capital contributions and withdrawals. Income sources are services, rent, interest, and commissions. Expenses cover salaries, taxes, supplies, rent, and depreciation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Account Titles

    Assets are things of value owned by the business and recorded in


    terms of their monetary value.

    o Cash: currency on hand and money in banks under the name


    of the company.

    o Accounts Receivable: amounts or claims from clients or


    customers resulting from services rendered by the company or
    by sale of merchandise.

    o Notes Receivable: amounts or claim from clients or customers


    which are expressed in writing like promissory notes.

    o Interest Receivable: interest is already earned but has not


    been collected.

    o Merchandise Inventory: goods or merchandise on hand and


    available for sale.

    o Office Supplies: refer to supplies for office use.

    o Store Supplies: supplies for store use

    o Prepaid Expenses: advance payments for certain services.


    This is considered as a mixed account for it shares values
    that of an asset and expense account.

    o Land: ground area used in the operation of the business

    o Building: structure used or occupied by the business

    o Office Equipment: equipment for office use such as


    typewriters, calculators, and computers

    o Store Equipment: equipment for store use such as weighing


    scales, cash registers, freezers used by the business

    o Furniture and Fixture: cabinets, tables, chairs, and light


    fixtures in the building.

    o Accumulated Depreciation- <asset>: a contra-asset account


    that aids in determining the net worth of business’ assets.
    Liabilities are debts or financial obligations of the business which
    usually must be paid on a specific date.

    o Accounts Payable: amounts owed to creditors for purchase of


    goods or services received.

    o Notes Payable: amounts expressed in written promise to pay


    the creditor on a specified date.

    o Taxes Payable: amounts due to the government like sales


    taxes
    and income taxes.

    o Interest Payable: interest already incurred but has not yet been
    paid.

    o Rent Payable: rent already used but has not been paid.

    o Salaries Payable: employees’ amounts for services done but


    has
    not yet been paid

    o Unearned Income: amounts received in advance before


    services
    are rendered.

    Owner’s Equity refer to the owner’s interest in the business which


    consists of the invested capital and results of operations whether
    gained or lost. The two equity tiles are:

    o <owner’s name>, Capital: amounts of contributions of the


    owner to the business.

    o <owner’s name>, Drawing: amounts withdrawn by the owner


    from the assets of the business for personal use.
    Income refers to the different services rendered to customers over a
    given accounting period.

    The following are some examples of Income:

    o Service Income/ Service Fees: refers to services rendered to


    customers.

    o Interest Income: refers to interest earned whether received in


    advance or as realized and/or not yet received.
    o Rent Income refers to services of offering office space for
    clients.

    o Commission Income: refers to services done


    through commission or percentages.

    Expenses are the different cost rendered for the different use of a
    certain services offered to the business.

    o Salaries Expense: refers to compensation or remunerations in


    whatever form to employees.

    o Taxes Expense: refers to taxes and licenses due to the


    government.

    o Utilities Expense: refers to the cost of electricity and water used


    in the ordinary course of business.

    o Advertising Expense: pertains to the cost which promotes


    certain services and product of the business.

    o Rent Expense: cost of the use of office space in each period

    o Depreciation Expense: allocated cost of fixed assets in a


    current period.

    o Interest Expense: interest that has already been considered in


    a period.

    o (Office/Store) Supplies Expense: things to be


    considered if supplies have been used up.

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