No Marshmallows, Just Term Papers
Dleyx Manalac August 13, 2012
• Cash – any medium of exchange that a blank will accept for deposit at face value. It includes coins, currency, checks, money orders, bank deposits and drafts.
• Notes receivable – a written pledge that the customer will pay the business a fixed amount of money on a certain date.
• Accounts receivable – claims against customers arising from sales of services or goods on credit. This type of receivable offers less security than a promissory note.
• Inventories – assets which are (a) held for sale in the ordinary course of business; (b) in the process of production for such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.
• Prepaid expenses – expenses paid for by the business in advance. It is an asset because the business avoids having to pay cash in the future for a specific expense. These include insurance and rent. These prepaid items represent future economic benefits – assets – until the time these start to contribute to the earning process; these, then, become expenses.
• Property, Land & Equipment – tangible assets that are held by an enterprise for use in the production or supply of goods or services, or for rental to others, or for administrative purposes and which are expected to be used during more than one period. Include are such items as land, building, machinery and equipment, furniture and fixtures, motor vehicles and equipment.
• Intangible assets – identifiable, nonmonetary assets without physical substance held for use in the production or supply of goods or services, for rental to others, or for administrative purposes. These include goodwill, patents, copyrights, licenses, franchises, trademarks, brand names, secret processes, subscription lists and non-competition agreements.
• Accounts Payable –...