Types Of Detailed Accounts
OK, you've now been served the meat or as I like to refer to them, "The Big Three and Equity's Kids", so get ready for the potatoes. Personal examples were used to help clarify the terms, but from here on out it's all business terminology and concepts.
Types of Detail Asset Accounts
Cash-Monetary items that are available to meet current obligations of the business. It includes bank deposits, currency & coins, checks, money orders, and traveler’s checks.
Accounts Receivable-Business claims against the property of a customer arising from the sale of goods and/or services on account.
Notes Receivable-Formal written promises given by customers or others to pay definite sums of money to the business at specified times.
Inventory-Expenditures for items held for resale in the normal course of a business’s operations.
Office Supplies-Expenditures for maintaining a supply of on hand supplies such as typewriter, copier, and computer paper, pens, pencils, and special forms.
Land-Expenditures for parcels of the earth. It includes building sites, yards, and parking areas.
Buildings-Expenditures for structures erected on land and used for the conduct of business.
Vehicles & Equipment-Expenditures for physical goods used in a business, such as machinery and vehicles. Equipment is used in a business during the production of income.
Furniture includes items needed in a business office such as tables, desks, chairs, and cabinets.
Types Of Detail Liability Accounts
Accounts Payable-Creditor’s claims against the business’s property arising from the business’s purchase of goods and/or services on account.
Notes Payable-Formal written promises to pay definite sums of money owed at specified times.
Mortgage Payable-Notes payable which are secured by a lien on land, buildings, equipment, or other property of the borrower (your company).
Types of Detail Revenue (Income) Accounts
Sale of Products-Amounts earned from the sale of merchandise.
Sale Of Services-Amounts earned from performing services.
Rental Income-Amounts earned from renting properties.
Interest Income-Amounts earned from investments.
Types of Detail Expense Accounts
Supplies-Expenditures for incidental materials needed in the conduct of business, such as office supplies.
Salaries-Expenditures for work performed by employees.
Payroll Taxes-Expenditures for taxes based on wages paid to employees.
Advertising-Promotional expenditures, such as newspapers, handbills, television, radio and mail.
Utilities-Expenditures for basic services needed to function in the modern world, such as water,
sewer, gas, electricity and telephone. Most businesses track the amount spent for each type of utility service.
Building Rental-Expenditures paid to an owner of property (building) for use of the property. A rental agreement called a lease contains the terms.
Maintenance & Repairs-Expenditures paid to repair and or maintain buildings and/or equipment.
Let's keep on rolling and learn about our Major Terms