Chart of Accounts Overview

Biological assets are living animals and plants intended for sale, providing future economic benefits and are reliably measured.

Current assets are collectible or realizable within one year.

The kinds of current assets include cash (e.g., cash in bank), accounts receivable (collectibles from customers), and notes receivable (promissory notes).

<p>Non-current assets are collectible or realizable beyond one year, whereas current assets are within one year.</p> Signup and view all the answers

<p>Property, plant, and equipment are tangible assets used in production, rental, or administrative purposes and expected to last more than one year.</p> Signup and view all the answers

<p>To provide a structured list of account titles for guiding bookkeepers in recording financial transactions.</p> Signup and view all the answers

<p>The allowance for doubtful accounts is a contra-asset that reduces accounts receivable balance to anticipate uncollectible accounts.</p> Signup and view all the answers

<p>Accounts are classified into Assets, Liabilities, Owner's Equity, Income, and Expense categories.</p> Signup and view all the answers

<p>For a non-VAT registered taxpayer, input VAT relates to expenses and is considered an expense or part of the asset's cost when acquiring a capital asset.</p> Signup and view all the answers

<p>Ending inventory includes Raw Materials, Goods In Process, and Finished Goods.</p> Signup and view all the answers

<p>A trademark is a symbol or name that distinguishes a product from others, adding intangible value to a business's assets.</p> Signup and view all the answers

<p>Assets are resources controlled by the enterprise from past transactions, expected to provide future economic benefits.</p> Signup and view all the answers

<p>Prepaid expenses represent costs paid in advance for benefits not yet incurred or expired, such as insurance or rent.</p> Signup and view all the answers

<p>'Unused Supplies' are items on hand that have not yet been consumed or used in operations.</p> Signup and view all the answers

<p>Real accounts pertain to assets and liabilities, while nominal accounts relate to income and expenses.</p> Signup and view all the answers

<p>Advances to employees are classified as collectible assets since they represent amounts owed to the company.</p> Signup and view all the answers

<p>Goodwill is an intangible advantage that allows a business to earn above-normal profits and is only recognized as an asset if it has been purchased.</p> Signup and view all the answers

<p>Accumulated depreciation refers to the total depreciation expense recognized on an asset over time, reflecting its decline in value.</p> Signup and view all the answers

<p>A long-term investment is intended to be held for more than one year, often including bonds or equity stakes, while a short-term investment is typically for less than one year.</p> Signup and view all the answers

<p>Cash surrender value is the amount an insurance company pays to the policyholder upon the surrender of a life insurance policy.</p> Signup and view all the answers

<p>A patent is an exclusive right granted to an inventor that allows control over the manufacture and sale of their invention for a specified period.</p> Signup and view all the answers

<p>Liabilities are defined by present obligations arising from past transactions that result in potential outflows of resources embodying economic benefits.</p> Signup and view all the answers

<p>Amortization is the systematic allocation of the cost of an intangible asset over its estimated useful life, helping to reflect its declining value.</p> Signup and view all the answers

<p>An investment in bonds represents a loan made to a borrower, typically corporate or governmental, and serves as a fixed income instrument.</p> Signup and view all the answers

<p>The duration is the life of the author plus 50 years after their death.</p> Signup and view all the answers

<p>Current Liabilities are financial obligations payable within one year, expected to be settled in the normal course of business and due within one year from the balance sheet date.</p> Signup and view all the answers

<p>Accounts Payable are obligations to suppliers for goods and services purchased and are classified as current liabilities because they are typically settled within a year.</p> Signup and view all the answers

<p>Notes Payable are written agreements where one party agrees to pay another a specific amount, typically including the amount to be paid and the interest rate.</p> Signup and view all the answers

<p>Accrued Expenses are expenses incurred but not yet paid, such as rent and salaries.</p> Signup and view all the answers

<p>Pre-collected or Unearned Income refers to revenue that has already been received but not yet earned or rendered for services.</p> Signup and view all the answers

<p>Initial Investment is the owner's initial contribution to start the business, while Withdrawal refers to drawing funds from the business for personal use.</p> Signup and view all the answers

<p>The Income and Expense Summary account is a temporary account used to close income and expenses at the end of the accounting period.</p> Signup and view all the answers

<p>Deferred Income is unearned revenue that represents advance payments for products or services to be delivered in the future. It is recorded as a liability on the balance sheet until the service is performed or the product is delivered.</p> Signup and view all the answers

<p>Notes Payable are promissory notes where one party agrees to pay another a certain amount, while Mortgage Payable is a loan secured by property that serves as collateral. Both represent long-term financial obligations.</p> Signup and view all the answers

<p>Reserves in Owner's Equity include amounts set aside from profits, such as Revaluation Surplus and Retained Earnings appropriated for specific purposes. They reflect retained profits earmarked for future use.</p> Signup and view all the answers

<p>Cash Dividend Payable indicates dividends declared by a company's board that are owed to shareholders but not yet paid. It is recorded as a liability, reflecting the company's obligation to distribute earnings.</p> Signup and view all the answers

<p>Output VAT is the value-added tax that businesses calculate and charge on their sales of goods and services when they are VAT registered. It is a liability until the tax is remitted to the government.</p> Signup and view all the answers

<p>Revenues are characterized as gross inflows of economic benefits during the period arising from the ordinary activities of an enterprise, contributing to an increase in equity, excluding owner contributions.</p> Signup and view all the answers

<p>Share Premium represents the amount received from shareholders over the par value of shares issued, contributing to the company's reserves and acting as a cushion for financial stability.</p> Signup and view all the answers

<p>Subscribed Share Capital refers to capital where shares have been promised but not fully paid, while Issued Share Capital is that which has been issued to shareholders and fully paid. The former is recorded as a liability until payment is completed.</p> Signup and view all the answers