FIVE M AJOR ACCOUNTS IN ACCOUNTING
ALICE
1. ASSETS
2. LIABILI TIES
3. INCOME
4. CAPITAL
5. EXPENSE
ASSETS
are the resources owned and controlled by the firm.
◈Current Assets
◈Non-current Assets
◈Tangible Assets
◈Intangible Assets
CURRENT ASSET
are assets that can be realized (collected, sold, used up) one year after year-
end date.
Examples include Cash, Accounts Receivable, Merchandise Inventory,
Prepaid Expense, etc.
1. Cash is money on hand, or in banks, and other items considered as
medium of exchange in business transactions.
2. Accounts Receivable are amounts due from customers arising from
credit sales or credit services.
3. Notes Receivable are amounts due from clients supported by
promissory notes.
4. Inventories are assets held for resale.
5. Supplies are items purchased by an enterprise which are unused as of
the reporting date.
6. Prepaid Expenses are expenses paid in advance. They are assets at
the time of payment and become expenses through the passage of
time.
7. Accrued Income is revenue earned but not yet collected.
