Chapter 3
1. Accounts
1. Assets
1. Cash: owned, has future benefit, from a past transaction, +/-
2. Accounts receivable: right to get cash in the future due to a past
sale, sell on account → +, collect cash → -
3. Prepaid expense: future expense, paid for in the past to collect in
the future, usually insurance/rent/advertising, get future right → +,
use up the right → -
4. Office supplies: future expense, received in the past to use in the
future, receive → +, use up → -
5. Equipment: future expense, received in the past to use in the
future, receive → +, use up → -
6. Intangible assets: receive in the past for use in the future, legal
rights, usually patents or licenses, receive → +, use up → -
2. Liabilities
1. Accounts payable: owed, paid in the future, due to a past
transaction, but on account → +, pay off → -
1. Similar: salaries, wages, rent, income tax, interest...
PAYABLE
2. Loans payable: owed, paid in future, due to past borr
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