Accounting Chapter 2 Transaction Analysis
Assets: An economic resource that provides future benefit for the business.
Cash and Cash equivalents: Means money and any medium of exchange including bank
account balances, paper currency, GIC, coins and cheques.
Accounts receivable: Is goods that have been bought on account but not yet paid for.
Money owed to you.
Notes receivable: A note receivable is similar to accounts receivable however a note is far
more binding and formal than that of an account. It generally comes with a specific
interest rate for the amount.
Inventory: The products, services or goods the business sells to customers.
Prepaid expenses: Is an asset that provides future benefit to the firm. Prepaid insurance,
prepaid rent and office supplies are examples of Prepaid expenses.
Land: Is the actual physical property the company