ACG 2021 Chapter Notes - Chapter 2: Balance Sheet, Deferral, Trial Balance
Document Summary
Economic resource that provide a future benefit for a business. Cash money and any medium of exchange including bank account balances, paper currency, coins, certificates of deposit, and checks. Accounts receivable sell goods and services and receives a promise for future collection of cash. Notes receivable like accounts receivable, but is more binding because the customer signed the note and usually it specifies the interest rate. Inventory the product that the company usually sells and usually under other names of merchandise and merchandise inventory. Prepaid expenses pays certain expenses in advance and provides future benefit for the business. Buildings cost of a building that the company uses. Equipment, furniture, and fixture has separate asset account for each type of furniture, fixture, and equipment. These assets depreciate over their estimated useful life, those that have the same lifespan are grouped together: liabilities. Accounts payable direct opposite of accounts receivable. The promise that a company will pay a debt.
