Current Assets 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.
Non-current Assets are assets that cannot be realized (collected, sold, used up) one year after year-end date. Examples include Property, Plant and Equipment (equipment, furniture, building, land), long term investments, etc.
Tangible Assets are physical assets such as cash, supplies, and furniture and fixtures.
Intangible Assets are non-physical assets such as patents and trademarks
Current Assets
Cash is money on hand, or in banks, and other items considered as medium of exchange in business transactions.
Accounts Receivable are amounts due from customers arising from credit sales or credit services.
Notes Receivable are amounts due from clients supported by promissory notes.
Inventories are assets held for resale
Supplies are items purchased by an enterprise which are unused as of the reporting date.
Prepaid Expenses are expenses paid in advance. They are assets at the time of payment and become expenses through the passage of time.
Accrued Income is revenue earned but not yet collected
Short term investments are the investments made by the company that are intended to be sold immediately
Non-Current Assets
Property, Plant and Equipment are long-lived assets which have been acquired for use in operations.
Long term Investments are the investments made by the company for long-term purposes
Intangible Assets are assets without a physical substance. Examples include franchise and copyright.
Classification of Liabilities
Current Liabilities. Liabilities that fall due (paid, recognized as revenue) within one year after year-end date. Examples include Accounts Payable, Utilities Payable and Unearned Income.
Non-current Liabilities are liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date. Examples include Notes Payable, Loans Payable, Mortgage Payable, etc.
Current Liabilities
Accounts Payable are amounts due, or payable to, suppliers for goods purchased on account or for services received on account.
Notes Payable are amounts due to third parties supported by promissory notes.
Accrued Expenses are expenses that are incurred but not yet paid (examples: salaries payable, taxes payable)
Unearned Income is cash collected in advance; the liability is the services to be performed or goods to be delivered in the future.
Non-Current Liabilities
Loans Payable
Mortgage Payable
Owner’s Equity
Capital is the value of cash and other assets invested in the business by the owner of the business.
Drawing is an account debited for assets withdrawn by the owner for personal use from the business.
Income
Service revenue for service entities, Sales for merchandising and manufacturing companies
Expense
Expenses decreases Equity in the accounting equation
