Accounting Exam 1 - General Ledger Accounts

supplies account

supplies are assets until they are used

the sale of an asset on credit for what is cost.....

leaves total assets unchanged

expanded accounting equation

Assets = Liabilities + Common Stock + Revenues - Expenses - Dividends

equipment accounts

Equipment is an asset

cash

a cash account reflects a company's cash balance

note payable

a note payable refers to a formal promise, usually denoted by the signing of a promissory note, to pay a future amount (generally money owed to bank or financial institution)

notes receivable

a note receivable, for promissory note, is a written promise of another entity to pay a definite sum of money on a specified future date to the holder of the note.

accounts payable

accounts payable refer to oral or implied promises to pay later, which usually arise from purchases of merchandise. (money company's owe to its suppliers)

LIABILITY ACCOUNTS

accounts payable, notes payable, unearned revenue, accrued liabilities, interest payable, wages payable, taxes payable

accounts receivable

accounts receivable are held by a seller and refer to promises of payment from customers too sellers. (are often called credit sales or sales on account) *are increased by credit sales and Billings to customers but are decreased by customer payments. (amount customers owe to a company)

accrued liablities

accrued liabilities are amounts owned that are not yet paid

buildings account

buildings such as stores, offices, warehouses, and factories are assets because they provide expected future benefits to those who control or own them.

ASSEST ACCOUNTS

cash, accounts receivable, notes receivable, inventory, prepaid accounts, supplies, investment in land, equipment, buildings, patents

EQUITY ACCOUTS

common stock, dividends, revenues, and expenses

the payment of a liablity.....

decreases assets and liabilities

a paid dividend....

decreases assets and stockholders' equity

the purchase of an asset on credit.....

increases assets and liabilities

a revenue generally.....

increases assets and stockholders' equity

receiving payment of a portion of an accounts receivable will

not affect total assets

prepaid accounts

prepaid accounts are assets that represent prepayments of future expenses and are increased with a DEBIT

land

the cost of land owned by a business is recorded in a land account

revenue accounts

the inflow of net assets from providing products and services to customers increases equity through increases in revenue accounts

expense accounts

the outflow of net assets in helping generate revenues decreases equity through increases in expense accounts

When collection is made on Accounts Receivable......

total assets will remain the same

unearned revenue account

unearned revenue refers to a liability that is settled in the future when a company delivers its products or services

Dividends

when a corporation distributes assets to its owner it decreases both company assets and total equity

common stock

when an owner invests in a company in exchange for common stock , it increases both assets and equity of a company