Untitled

The account, the journal, and the ledger.

account:the detailed record of all changes that have occurred in a particular asset, liabilities, or owner's equity

The journal: chronological record of transactions.

Ledger:the book holding all the accounts with their balances

assets:Are economic resources that will benefit the business in the future

Cash:Is a record of the cash effects of transactions.

Accounts receivable: Is the right to receive cash in the near future.

Notes Receivable: Is the right to receive cash and interest in the future.

Prepaid Expenses: T he company pays for the expenses before it is used.

Land: shows the cost of lad a business hold use in operations.

Liabilities: Recall that liability is a debt-that is, something you owe.

Equipment, furniture, and fixtures: has a separate asset account for each type of equipment

Accounts Payable: Is an obligation to pay in the near future.

Accrued Liabilities: Is a liability for which the business knows the amount owed, but the bill has not been paid.

Notes Payable: Is obligation to pay cash and interest in the future.

Building: the cost of a building

Owner’s Equity: The owner’s claim to the assets of the business is called Owner’s Equity.

Revenues: Refer to earnings for work done or goods delivered by the company.

Capital: Represents the net investment of the owner in the business.

Drawing: Mean less earning retained by the company for future growth.

Expenses: Are present or future payments of cash that are incurred to help the company earn revenues.