aleks wk 1.docx - The chart of accounts lists all the...

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The chart of accounts lists all the accounts that a company uses in its accounting system. The accounts are usually organized into the following sequence. 1. Asset accounts Examples: o Cash (Amount of cash on hand) o Accounts Receivables (Amount owed to the company for services performed or products sold, where the cash has not yet been received) o Property, Plant, and Equipment (Amount of land, buildings and equipment) o Prepaid Insurance (Insurance paid in advance, but not yet used) 2. Liability accounts Examples: 3. Owner's Equity accounts Examples: 4. Revenue accounts Examples: 5. Expense accounts. Examples: o Salaries Expense (Amount earned by employees for work already done) o Advertising (Cost incurred for advertising, promotions, and other
Expense marketing activites) The purpose of financial statements is to provide financial information about the business. The following briefly describes the main three financial statements. Balance Sheet: The balance sheet lists the balances in the Assets, Liabilities, and Capital accounts at a specific point in time .

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