NORMAL BALANCES:

DEBIT (DEAL)
D-ividends (Drawings)
E-xpenses
A-sset
L-osses

CREDIT (GIRLS)
G-ains
I-ncome
R-evenues
L-iabilities
S-tockholder's (or Owner's) Equity

“ASSET”

Assets = Liabilities + Owner's Equity

CHARACTERS
a) BUSINESS = "Ikaw"
b) ASSET = Pag-aari "ng business"
c) LIABILITY = Utang "ng business" sa iba (Ex. Bank)
d) OWNER'S EQUITY = "Utang" "ng business" sa may-ari (owner)
Tinawag po nating "Utang" or "Obligation" ang Owner's Equity/Capital dahil ang point of view
natin ay si "Business"

Dahil na kay BUSINESS ang mga ininvest/contributions/puhunan ni Owner, parang may

"Utang" si BUSINESS dahil may "obligation" siyang ibalik ang mga yan sa may-ari/owner.

Again, our POINT of VIEW is the "Business" (not the owner po)

**

Magkaiba/hiwalay ang "Business" at "Owner" ("Entity" Concept)

1. Business = as if an "Artificial being" (our POINT OF VIEW)
2. Owner = Human being

ASSETS:
A. Current Assets:
 Cash
 Trading Securities (Marketable Securities) (Fair value through Profit or Loss) (Short-term
Investment)
 Accounts Receivable
 Allowance for Doubtful Accounts (Allowance for Bad debts)
 Notes Receivable
 Merchandise Inventory*
 Accrued "_____" Income
 Prepaid Expenses
a. (Supplies/Office Supplies/Store Supplies*)
b. (Prepaid Rent, Prepaid Salaries, etc.) - ang keyword ay "PREPAID"
 Advances "TO" Employess (Advances to Suppliers*)
 Other "current" assets

B. Noncurrent Assets
  Land
 Building
 Machinery and Equipment
 Furniture & Fixtures
 Accumulated Depreciation
 Intangible Assets
 Other "noncurrent" assets

....................

Ang ASSET ay nahahati sa dalawang classifications.

1. "Current" Assets
2. "Noncurrent" Assets

CURRENT = SHORT-TERM (generally, "1 year or less").

NONCURRENT = LONG-TERM (generally, "more than 1 year")

*Siyempre, pag sinabing "general", may exception. Ibig sabihin, pwedeng hindi masunod yung
guide na "1 YEAR"
(dahil may tinatawag tayong "Normal operating cycle")