SET A
refers to cash and other assets that are easily converted into cash or consumed during the accounting period usually one year?
current assets
is a money on hand, or in banks, and other items considered as medium of exchange in business transactions
are amounts due from the customers arising from credit sales or credit services.
ACCOUNTS RECEIVABLE
are items purchased by an enterprise which are unused as of the date of reporting date.
BASIC ELEMENTS OF ACCOUNTING
ASSETS, LIABILITIES, OWNER’S EQUITY, INCOME, EXPENSES
ACCOUNTING EQUATION
ASSETS= LIABILITIES + OWNER'S EQUITY
ARE PROPERTIES OR RIGHTS OR PROPERTY OWNED BY THE BUSINESS. IN OTHER WORDS, ANYTHING OF VALUE OWNED BY THE BUSINESS.
ASSETS
REFERS TO THE OBLIGATIONS OF THE COMPANY OR ORGANIZATION
LIABILITIES
IS A GENERAL TERM THAT MEANS ANY EARNINGS MADE BY THE BUSINESS.
INCOME
IS THE MONEY SPENT OR COST INCURRED IN AN ENTITY’S EFFORT TO GENERATE REVENUE.
EXPENSES
Are expenses paid in advance.
PREPAID EXPENSE
are obligations or debts of the business which will be paid during the accounting period by means of payment of current assets or a creation of another current liability.
What is accrued expense?
They are expenses already incurred but not yet paid.
Accumulated Depreciation is considered as __________.
contra asset
What is Income Statement?
A summary of the revenue and expenses for a specific period of time, such as a month or a year.
Balance Sheet
A list of the assets, liabilities, and the owner’s equity as of a specific date, usually at the close of the last day of the month or a year.
Depreciation on the equipment of ABM company is P60,000.
Depreciation Expense 60,000
accumulated Expense 60000
Accrued salaries for the year ended December 31, 2016 amounted to P34,500.00.
Salaries Expense 34500
Salaries Payable 34500
Accrued rent for the year ended December 31, 2016 amounted to P4,500.00.
Rent Expense 4500
Rent Payable 4500
Accrued utilities for the month ended March 31, 2020 is P50,000.
Utilities Expense 50,000
Accrued Utilities 50,000