ACC 100 Lecture Notes - Lecture 3: Accounts Payable, Deferral, Office Supplies

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Donna Zathy

Document Summary

Chapter 3: we record transactions whether or not cash is involved, do(cid:374)"t (cid:373)e(cid:373)o(cid:396)ize the a(cid:272)(cid:272)ou(cid:374)t (cid:374)a(cid:373)es (cid:271)e(cid:272)ause e(cid:448)e(cid:396)y (cid:395)uestio(cid:374) has diffe(cid:396)e(cid:374)t transactions. How to name your business: up to ,000 to create a name, the name should communicate the key efforts of your business, avoid geographic/random numbers/long names/personal puns. How do you use account names to record business activities: assets. Accounts receivable (an amount owed by customer for services or goods you provided in the past) Prepaid expense (asset because paid upfront to use in the future, i. e. paying for tuition) When you pay for something, you record it as a + When you receive it, you record it as a (i. e. prepaid insurance, rent, advertising (cid:271)e(cid:272)ause you"ll (cid:396)e(cid:272)ei(cid:448)e a good o(cid:396) se(cid:396)(cid:448)i(cid:272)e i(cid:374) the futu(cid:396)e) When you receive it, you record it as a + When you use it up, you record it as a .