Account Titles
EXAMPLES OF ACCOUNTS FALLING UNDER EACH ACCOUNTING EQUATION ELEMENT:
Current Assets
Cash - A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.)
Petty Cash Fund - A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
Notes Receivable - An asset representing the right to receive the principal amount contained in a written promissory note. Principal that is to be received within one year of the balance sheet date is reported as a current asset. Any portion of the notes receivable that is not due within one year of the balance sheet date is reported as a long term asset.
Accounts Receivable - A current asset resulting from selling goods or services on credit (on account).
Allowance for Bad Debts - A valuation account used to estimate the portion of a bank's loan portfolio that will ultimately be uncollectible. When a loan goes bad, the asset is removed from the books and the allowance for bad debt is charged for the book value of the loan. Also known as "loan-loss reserve."
Accrued Interest Income - An accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result of the difference in timing of cash flows and the measurement of these cash flows.
Advances to Employees - An asset account used to record amounts given to an employee with the expectation of repayment. For example, if an employee is given money by a company and the money is expected to be repaid or spent for company purposes, the amount will be recorded in this current asset account until it is repaid or until the expense documentation is provided.
Inventories - A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be
Current Assets
Cash - A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.)
Petty Cash Fund - A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
Notes Receivable - An asset representing the right to receive the principal amount contained in a written promissory note. Principal that is to be received within one year of the balance sheet date is reported as a current asset. Any portion of the notes receivable that is not due within one year of the balance sheet date is reported as a long term asset.
Accounts Receivable - A current asset resulting from selling goods or services on credit (on account).
Allowance for Bad Debts - A valuation account used to estimate the portion of a bank's loan portfolio that will ultimately be uncollectible. When a loan goes bad, the asset is removed from the books and the allowance for bad debt is charged for the book value of the loan. Also known as "loan-loss reserve."
Accrued Interest Income - An accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result of the difference in timing of cash flows and the measurement of these cash flows.
Advances to Employees - An asset account used to record amounts given to an employee with the expectation of repayment. For example, if an employee is given money by a company and the money is expected to be repaid or spent for company purposes, the amount will be recorded in this current asset account until it is repaid or until the expense documentation is provided.
Inventories - A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be