ACCOUNT TITLES

LEARNING OBJECTIVES
At the end of the session, you should be
able to:
1. Describe each asset account.
2. Describe each liability account.
3. Describe equity account.
4. Give examples of revenue account
5. Give examples of expense account.

ASSET ACCOUNT
Current Asset
Cash includes coins, currency, checks
Investment in Trading Securities debt and
equity securities purchased with the intention
of selling them in the near future in order to
generate short-term gains or profits.
Notes Receivable claims from customers
evidenced by formal promises to pay usually
in the form of notes.
Accounts Receivable claims from
customers arising from sale of goods or
services in the ordinary course of business.

ASSET ACCOUNT
Current Asset
Accrued Income income already
earned not yet collected ( e.g. Rent
receivable, interest receivable)
Advances to Employees cash
advance made by employee
Prepaid expenses expenses
already paid but not yet incurred (e.g.
Office supplies, prepaid rent, prepaid
insurance, etc)

ASSET ACCOUNT
Property, Plant & Equipment
Land
Building
Office Equipment
Furniture & Fixtures
Transportation Equipment

LIABILITY ACCOUNT
Current Liabilities
Notes Payable amount owed to creditors
evidenced by a written promise to pay
Accounts Payable amount owed to
creditors
Accrued Expenses expenses already
incurred but not yet paid (e. g. salaries
payable, interest payable, rent payable,
utilities payable
Unearned Revenue revenue already
received not yet earned

LIABILITY ACCOUNT
Non-current Liabilities
Mortgage Payable long-term debt of
the business for which the business
has pledged certain assets as security
to the creditor
Bonds Payable bonds issued to
lenders to finance the acquisition of
equipment and other needed assets.

EQUITY ACCOUNT
Owners Capital a traditional
accounting term to refer to the
resources invested by the
owner.
Owners Drawing used to
record temporary withdrawal of
cash or non-cash assets made
by the owner

INCOME ACCOUNTS
SERVICE INCOME- Income
derived
from rendering of services
-Primary income for service
business

 OTHER INCOME- Secondary

income
for service business (e.g.)
- INTEREST INCOME
- DIVIDEND INCOME
- RENT INCOME
- GAIN ON SALE OF EQUIPMENT

EXPENSES

SALARIES ANDWAGES EXPENSE

RENT EXPENSE
ADVERTISING EXPENSE
REPAIR AND MAINTENANCE EXPENSE
SUPPLIES EXPENSE
INSURANCE EXPENSE
REPRESENTATION & ENTERTAINMENT EXPENSE
TRANSPORTATION EXPENSE
FUEL AND OIL EXPENSE
UTILITIES EXPENSE
TAXES AND LICENSES EXPENSE

EXPENSES

DEPRECIATION EXPENSE
DOUBTFULACCOUNTS EXPENSE
MISCELLANEOUS EXPENSE
OTHER EXPENSE -LOSS ON SALE
OF EQUIPMENT
FINANCE COST INTEREST
EXPENSE