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  • Accounting Equation & Heads of Accounts

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    WALEED HAIDER
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    The accounting equation states that assets must always equal liabilities plus owner's equity. Assets are categorized as current assets or fixed assets. Current assets include cash, accounts receivable, and inventory. Liabilities are categorized as short term, midterm, or long term. Owner's equity is equal to initial capital contributed plus retained earnings minus any drawings or distributions to owners. The document also lists common heads of accounts that appear on a balance sheet or statement of financial position.

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    The accounting equation states that assets must always equal liabilities plus owner's equity. Assets are categorized as current assets or fixed assets. Current assets include cash, accounts receivable, and inventory. Liabilities are categorized as short term, midterm, or long term. Owner's equity is equal to initial capital contributed plus retained earnings minus any drawings or distributions to owners. The document also lists common heads of accounts that appear on a balance sheet or statement of financial position.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    4 views3 pages

    Accounting Equation & Heads of Accounts

    Uploaded by

    WALEED HAIDER
    The accounting equation states that assets must always equal liabilities plus owner's equity. Assets are categorized as current assets or fixed assets. Current assets include cash, accounts receivable, and inventory. Liabilities are categorized as short term, midterm, or long term. Owner's equity is equal to initial capital contributed plus retained earnings minus any drawings or distributions to owners. The document also lists common heads of accounts that appear on a balance sheet or statement of financial position.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    Accounting Equation

    Assets = Equities
    Assets = Liabilities + Owner’s Equity
    Assets = Current Assets + Fixed Asset
    Liabilities = Short term + Midterm + Long term
    Owner’s Equity = Capital + Profit – Drawing
    Heads of Accounts
    for Balance Sheet/Statement of Financial Position
    Assets Equities
    Current Assets Liabilities
    Cash Current Liabilites (Short Run)
    Bank Accounts Payable
    Accounts Receivable Notes/Bill Payable
    Notes/Bill Receivable Unearned_______
    Prepaids _______ Advances from Customer
    Supplies ______ Payables
    Inventory/Stock Fixed Liabilities
    Fixed/NonCurrent Assets Bank Loan
    Land Bonds Payable
    Building Lease Financing
    Equipment
    Owner’s Equity
    Furniture
    For Sole Proprietor/Partner
    Machinery
    Capital: A
    Vehicles/Automobiles
    Less: Drawings/Loss
    Intangible Assets
    Add: Profit/Additional Investment
    Copyright
    Trademark For Company
    Patent To be discussed in topic of
    Goodwill Accounting for Corporations

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