Lecture Notes: Chart of Accounts (Assets, Liabilities, Equity, Revenue, and Expenses)

Vocabulary flashcards covering assets, liabilities, equity, revenue, and expenses from the notes.

Common stock

Equity representing ownership in a corporation; contributed capital that increases owners' equity.

Cash

Most liquid asset consisting of currency and cash equivalents; used in day-to-day operations.

Taxes

Government charges; typically recorded as an expense when incurred.

Supplies

Current asset for on-hand items used in operations; expensed as consumed.

Accounts payable

Current liability representing amounts owed to suppliers.

Accounts receivable

Current asset representing amounts billed to customers not yet collected.

Rent

Expense representing the cost of leasing property or space.

Inventory

Current asset consisting of goods held for sale in the ordinary course of business.

Office Equipment

Long-term asset such as desks, chairs, and other equipment used in operations.

Building

Long-term asset representing a building owned by the entity.

Land

Long-term asset representing land owned by the entity; not depreciated.

Capital OE

Owner's equity account representing contributed capital from the owner.

Service Revenue

Income earned from providing services; increases revenue on the income statement.

Retained Earnings

Cumulative net income kept in the business; part of owner's equity.

Salaries Expenses

Payroll expense representing compensation paid to employees.

Utilities Expenses

Expense for utilities such as electricity, water, and gas.

Furniture & Fixtures

Long-term asset class including furniture and fixtures used in operations.