Acct List definitions v1

Acct List - Hung ACC410 ACCOUNT LIST(I Balance Sheet(BS Accounts The list of accounts below has been modified to include"classified balance sheet

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Hung ACC410 1 ACCOUNT LIST (I) Balance Sheet (BS) Accounts The list of accounts below has been modified to include “classified balance sheet” categories [in italics] . Please also look at the uses and ratios associated with the classified balance sheet. ASSETS Current Assets (CA) : assets that are cash, will be turned in cash, or will be used up within one year. ± Cash : coins, currency, unrestricted amounts on deposit. ± Short-Term Investments/Marketable Securities: a business will investment excess cash by buying stocks, bonds, etc. of other companies such as IBM, Microsoft, etc. ± Receivables: are cash amounts due from other parties. The word in front of receivable tells you why it is owed. Some common examples: - Accounts Receivable (AR): cash due from customers or clients in very short time period, generally 30 to 60 days of receiving the bill. - Loan/Note Receivable: cash due which is evidenced by a formal written promissory note. The note will specify when the payment is due and the interest rate. - Interest Receivable: interest due on a loan. [Note: the principal portion is separate from the interest portion. - Dividends Receivable: dividends due from stock investments. These amounts are “receivable” when the board of directors of the other company votes in favor of a dividend. ± Less: Allowance for Doubtful Accounts: portion of accounts receivable that is estimated to be uncollectible. ± Inventory (INV): items held for sale in the ordinary course of business. ± Prepaid Expenses : items where the service is paid for in advance. These items will be expensed later during the “adjustment process. Some common examples: - Prepaid Rent, Prepaid Insurance, Prepaid Salaries, Prepaid Advertising. the following assets last longer than one year, are tangible, and are used in operations to generate revenue all are depreciated [expensed] over the period that they help generate revenues. The exception is land. No explanations are included for those items that are obvious based on their title. ± Land
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This note was uploaded on 04/06/2008 for the course ACCT 410x taught by Professor Bonner during the Spring '06 term at USC.

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Acct List - Hung ACC410 ACCOUNT LIST(I Balance Sheet(BS Accounts The list of accounts below has been modified to include"classified balance sheet

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