實(shí)用會(huì)計(jì)英語課件1-18

GeneralViewofAccounting

CHAPTER1Introductionofaccounting*Secondoldestprofession*Participatedinthedevelopmentofnations,trade,finance,moneyandbanking

*

Double-entry

bookkeepingfueledtheRenaissanceIntroductionofaccountingLucaPacioli(1445-1517)

SummadiArithmetica

treatiseonbook-keepingPeoplehaveunderstoodaccountingonascientificprincipleinItaly

IntroductionofaccountingJohnGouge,1543

ThefirstknownEnglishbookonaccounting

AProfitableTreatycecalledtheInstrumentorBoketolearntoknowthegoodorderofthekepyingofthefamousereconynge,calledinLatyn,DareandHabdare,and,inEnglyshDebitorandCreditor.IntroductionofaccountingThefirstpublicrecognitionofaccountants

ABankruptcyAct

In1831

Itmentionsaccountantsalongsidemerchantsandbankersasproperlyskilledtoconductaudits.

IntroductionofaccountingManagementaccounting

WorldWarOne(1914-1918)

Accountantsassistinthecontrolofcostsinrelationtotheproductionofammunitions:bullets,bombs,explosives,etc.

IntroductionofaccountingAftertheSecondWorldWarDevelopmentofaccountingEnron

financialscandal

InAugust2002,the

Sarbanes-OxleyAct

ispassedintheUnitedStates.

AccountingDefinition

Accounting

≠Bookkeeping

Itisthemeansofrecordingtransactionsandkeepingrecords.

AccountingBookkeepingBookkeepingistheday-to-dayrecord-keepinginvolvedintheprocessofaccounting.

AccountingDefinition

AccountingAccuratefinancialreportsUsefultomanagers,regulators,andshareholders,creditorsorownersAccountingDefinitionMajorgoalofaccountingAnalysis

Interpretation

Useofinformation

AccountingDefinitionTheAmericanInstituteofCertifiedPublicAccountants“Theartofrecording,classifying,andsummarizinginasignificantmannerandintermsofmoney,transactionsandeventswhichare,inpartatleast,ofafinancialcharacter,andinterpretingtheresultsthereof.”

(AICPA)

Earlydefinitionsofaccountingfocusedonthetraditionalrecord-keepingfunctionsoftheaccountant.AccountingDefinitionThemoderndefinitionofaccounting

Itisdefinedasaninformationsystemthatmeasures,processes,andcommunicatesfinancialinformationaboutanidentifiableeconomicentity.

Encyclopedia

Accountingisdefinedastheprocessofmaintaining,auditing,andprocessingfinancialinformationforbusinesspurposes.

AccountingDefinitionThemodernaccountant

record-keepingPlanningandproblemsolvingControlandattentiondirectingEvaluationReviewAuditingAccountingDefinitionBusinessactivities

AccountingDataUsefulinformation

DecisionmakerTheUsersofAccountingInformationUsers

thosewhohaveadirectinterestinthebusinessincludingmanagement;

2.thosewhohaveindirectinterestinthebusiness.

UserswithDirectFinancialInterestPresentandPotentialInvestors

PresentandPotentialCreditors

ManagementManagementManagement

Managementisthegroupinabusinesswhohasoverallresponsibilityforoperatingthebusinessandforachievingthebusinessgoals.

Ownersofthebusiness

Hiredmanagers

Majorfunctionofaccounting

Toprovidemanagementwithrelevantandusefulinformation

Suchas:

whatwasthecompany’snetincomeduringthepastyear?

Whatproductsaremostprofitable?Whatisthecostofmanufacturingeachproduct?ManagementPresentandPotentialInvestorsTheyareinterestedinthepastsuccessofthebusinessanditspotentialearningsinthefuture.

OperatingresultsofbusinessProfitsharingpolicyMakedecisionsWhethertoincrease,ordecreaseinvestmentsPresentandPotentialCreditorsTheyareinterestedinwhetherthecompanywillhavethecashtopaytheinterestandrepaythedebtatfixedtime.

BanksFinancecompaniesMortgagecompaniesSecuritiesfirmsInsurancefirmsSuppliersIndividualsUserswithIndirectFinancialInterest

TaxAuthorities

OtherGroups

TaxAuthoritiesTaxauthoritiesdon’thavedirectfinancialinterestinthecompany,buttheyusuallyanalyzethetaxstatusundertakenbyabusinesstoestablishtaxpolicy.

GovernmentsIncometaxesSocialsecurityPayrolltaxesExcisedtaxesSalestaxesEachtaxrequiresspecialtaxreturnsandoftenacomplexsetofrecordsaswell.

OtherGroupsTheyadviseinvestorsandcreditorsandhaveanIndirectinterestinthefinancialperformanceofabusiness.

FinancialanalystsandadvisersbrokerslawyerseconomiststhefinancialpressOtherGroupsCustomersThegeneralpublicTheyareconcernedabouttheoperatingresults,theeffectsthatcorporationshaveoninflation,theenvironment,socialproblems,andthequalityoflife.

OtherGroupAccountingProfessionPublicAccountingGovernmentAccountingInternalAuditingManagementAccountingPublicAccountantsCertifiedPublicAccountants

TheWorkofPublicAccountantsWorkfortheirowncompayWorkforotheraccoutingcompanies

provideaccountingservicestoindividuals,businesses,andgovernments

ConcentrateontaxmattersSpecializeinforensicaccountingGovernmentAccountantsworkforthelocalorstatelevel

TheWorkofGovernmentAccountantsKeepandexaminetherecordsofgovernmentunits

administerandformulatebudgets,totrackcostsandtoanalyzeprograms

Theymustfollowspecialproceduresandregulationsandreportsforgovernmentofficials

ManagementAccountantsworkincompaniesandhelptheManagementmakedecisionsWorkofManagementAccoutantsProvidethemanagementadviceaboutcapitalbudgetingandbusinessanalysis

Recordandanalyzethefinancialaccountinginformation,marketshare,competition,andexpansionopportunitiesofthecompany

InternalAuditorscheckaccountingledgersandfinancialstatementswithincompaniesWorkofInternalAuditorsTaketrainingtokeepskillsuptodate.Createanddevelopauditingsystemsforcompaniesoragencies.Conductresearchtolearnauditingneedsforcompaniesorindividuals.Determineandrecordthevalueofrealproperty.Analyzethefinancialdataandrecordstoensurethattheycomplywithlegalandfinancialstandards.

WEARESAILINGRIGHTALONG!!FormsofBusinessOrganization

CHAPTER2FormsofBusinessOrganization

*Soleproprietorships

*Partnerships

*Corporations

Accountantsshouldrecognizeeachformasaneconomicunitseparatefromitsowners.Legallyonlythecorporationisconsideredseparatefromitsowners.Simplestformofaccounting

Inthisbook,weonlyshowaccountingforthesoleproprietorship.

SoleProprietorshipSoleProprietorship

SoleProprietorshipAbusinessownedbyonepersoniscalledasoleproprietorshiporasingleproprietorship.

RetailindustryHandicraftsAgricultureForestryFisheryOtherserviceandfamilyworkshopsThesoleproprietorshipisprevalentin:SoleProprietorshipPersonalaffairBusinessaffairsingleproprietorship

Fromtheviewpointofalllegalrightsandresponsibilities,yoursoleproprietorshipbusinessandyouareconsideredtobeoneandthesame.

SoleProprietorshipTheownerdirectsbusinessactivitiesandmaysupplyallmanagementandlaborusedbythebusiness.SoleProprietorshipProfitsLossesSoleProprietorshipForbusinessandfinancialmanagementpurposes,itisbettertomaintaincompletelyseparaterecordsforthebusinessandthehousehold.

Bankaccounts

Creditarrangements

BusinessaffairFamilyaffairSoleProprietorshipAdvantagesofSoleProprietorship

Simplicity

Flexibility

Asoleproprietorshipcanbesetup,modified,bought,soldorterminatedveryquickly.

Theproprietorcanchangethesizeandmanagementofthebusinessunit,asheorshedesiresatanytime.

Theinvolvementoffamilymembersinthebusinessisrelativelyunrestricted.

SoleProprietorshipLimitationsofSoleProprietorship

LimitedliabilityLimitedaccesstocapitalandbusinessopportunitiesProblemofcontinuityDifficulttomeasurebusinessfinancialperformance,profitabilityandlossofequityPartnerships

Partnership

Partnerships

Partnershipsaresetupbytheownerswhowishtocombinecapitalormanagerialtalentsforsomecommonbusinesspurpose.

Inaccounting,partnershipsareconsideredasseparateentitiesfromtheowners.Partnerships

PartnerPartnerPartnerProfitsLossesPartnerships

PartnershipGeneralpartnership

Limitedpartnership

Mostpartnershipsareorganizedasgeneralpartnerships.

writtenpartnershipagreement

Thepartnershipagreementsinalimitedpartnershipmustberegisteredwiththegovernment.

Generalpartnership

Limitedpartnership

Publicnoticeofthepartnershipagreementisnotrequired.

Partnerships

Partnerships

Partnershipagreement

Itmustcontainthemethodhowtodistributeprofitsandlossestoeachowner.PartnerAProfitsLossesPartnerBPartnerC30%40%30%

30%

40%

30%Partnerships

ProfitsLossesIftheagreementdescribesthemethodofdistributingtheprofitsbutdoesnotmentionthelosses,thelossesaredistributedinthesamewayasprofits.

Iftheagreementdoesn't'tdescribethemethodofdistributingtheprofitsandlosses,theprofitsandlossesmustbesharedequally.

Partnershipagreement

Partnerships

AdvantagesofPartnerships

EasiertoassemblefinancialandphysicalresourcesSpecializeinmanagementandoperationsaccordingtothepartnersskillsandinterestsThelimitedpartnershavelimitedliabilityBetteraccesstocapitalandcreditSimplerecord-keepingandincometaxfilingrequirementsRelativelyunlimitedopportunitiesforfamilymemberstoworktogetherinstartingoroperatingabusinessPartnerships

LimitationsofPartnerships

UnlimitedliabilityGeneralpartnerNooverallunderstandingofthefinancialpositionofthepartnership.

limitedlifewithdraws,goesbankrupt,diesorretiresPartnersholdingaminorityinterestcanbealienatedTheinterestsofminoritypartnersmaybeignored.

CorporationsCorporations

Corporations

Acorporationisabigcompany,oragroupofcompaniesactingasasingleorganization.

Acorporation,charteredbythestateinwhichitisheadquartered,isconsideredbylawtobeauniqueentity,separateandapartfromthosewhoownit.Corporations

Cashorotherresources

ShareStockholderCorporationCorporations

ShareholdersElect

Board

of

directors

Decideonthemajorbusinesspolicies,authorizescontracts,determinesonexecutivesalariesandarrangesmajorloanswithbanks.

Declarationofdividends

Corporations

Board

of

directors

Severalofficersofthecorporationandseveraloutsiders

Appoint

ManagersExecutethecompany’spoliciesandcarryoutday-to-dayoperations.

Corporations

ManagementReportthefinancialresults

Board

of

directors

ReportthefinancialresultsShareholdersPresident,vicepresidents,controller,treasurer,andsecretaryCorporations

AdvantagesofCorporations

ContinuouslifeSeparatelegalentity

Limitedliability

Easeofcapitalgeneration

Lackofmutualagency

Centralizedauthorityandresponsibility

Professionalmanagement

LimitationsofCorporations

Corporations

HighorganizingcostsInternalconflictsRestrictionsonthesaleofstock

MorepaperworktoprepareDoubletaxationNegativeinfluenceoftherequisitionofpersonalguaranteesfromcorporateofficersasaconditionofsupplyingcreditWEARESAILINGRIGHTALONG!!AccountingEquationandIllustrationCHAPTER3Inthisbox,therearemanychalksandtheclaimonthesechalks.

AccountingEquation

Valueofthesechalks＝ValueoftheclaimsonchalksAccountingEquation

＝BusinessEconomicresources

Economicresources

＝Equities

＝Anothertermforclaimsisequities.AccountingEquation

Economicresources

Owners

Creditors

Comesfrom∥∥Owner’sequity

Creditors’equity

AccountingEquation

Economicresources

＝Owner’sequity

＋Creditor’sequity

Inaccounting,thetermforeconomicresourcesisassetsandcreditors’equityisliabilities,theequationisdescribedasfollows:

Assets＝Owner’sequity

＋LiabilityIASBdefinesassetsasresourcescontrolledbytheenterpriseasaresultofpasteventsandfromwhicheconomicbenefitsareexpectedtoflowtotheenterprise.

Assets

Assets

Assetsaretheeconomicresourcesownedorcontrolledbyabusinessthatcanbenefitfutureoperationsforthebusiness.

ASSETSCurrentassetsLong-termassetsPaycheckforDateDept.ofTreasurerJaneDoeTheexamplesforassetsarecash,inventory,notesreceivable,accountsreceivable,prepaidexpenses,land,buildings,andequipmentandsoon.

Assets

Liabilities

IASBdefinesliabilitiesaspresentobligationoftheenterprisearisingfrompastevents,thesettlementofwhichisexpectedtoresultinanoutflowfromtheenterpriseofresourcesembodyingeconomicbenefits.

Liabilities

Liabilitiesarethosedebtsarisingfromthepasttransactionsandshouldbepaidbyprovidinggoodsorservicesinthefuture.

LiabilitiesShort-termLiabilities(currentliabilities)Long-termLiabilitiesLiabilities

LiabilitiesAmountowedtocreditorsforgoodsorservicesboughtoncreditBorrowedmoney

Salariesandwagesowedtoemployees

Taxesowedtothegovernment

Currentliabilitiesarethoseamountswhicharerepayablewithinaperiodoflessthan12monthsorwithinanaccountingcyclesuchasnotespayable,andaccountsreceivable.

Non-currentarethosewhichshouldberepaidaftermorethan12monthsorlongerthananaccountingcycle,suchasbondspayable,mortgagespayable.

Liabilities

Owner’sequity

Owner’sequityreferstotheclaimsbytheowneronthenetassetsofthebusiness.

Assets＝Owner’sequity

Liability－Owner’sequity

BusinessAccountCashorotherresources

OwnerThebusiness’assets

increases,andowner’sequity

inthoseassetsalsoincrease.

BusinessAccountOwner’sequity

CashorotherresourcesOwnerTheassets

decreases

andowner’sequity

alsodecreases.

Owner’sequity

Owner’sequity

IncreaseDecreaseExpensesincurredRevenuesearnedOwner’sequity

Revenues＞ExpensesRevenues－Expenses＝NetincomeRevenuesExpenses＜RevenuesExpenses－＝NetlossIllustrativeTransactions

Now,Letusanalyzetheeffectsofsometypicaltransactions.IllustrativeTransactions

SupposeGeorgeRossopensaphotocopycompany

calledGeorgeRossPhotocopyCompanyonJune1.DuringJune,hisbusinessengagesinthetransactionsdescribedinthefollowingpages.

IllustrativeTransactions

Owner’sInvestment

Georgetakes$10,000outofhisownpersonalaccounttoopenshiscompany.

InvestmentIllustrativeTransactions

Theinvestmentincreasesassets(Cash)andowner’sequity(GeorgeRoss,Capital).

Assets=Liabilities+Owner’sequity

1.$10,000$10,000IllustrativeTransactions

PurchasingAssetswithCash

Thecompanypurchasedpaperandstationaryfor$800andacomputerfor$4,000.Thistransactiondecreasingcashandincreasingofficesuppliesandofficeequipment.IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$10,000

$10,000

2.+$800(officesupplies)+$4,000(officeequipment)

-$4,800(cash)

bal.$10,000$10,000IllustrativeTransactions

PurchasingAssetsbyIncurringaLiability

SupposeGeorgeboughtphotocopyequipmentoncreditfor$1,500.Thistransactionincreasestheassets—equipmentandincreasestheliabilitiesofthisagency.IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$10,000$10,000+1,500

(photocopyequipment)

$1,500

(accountspayable)

bal.11,5001,50010,000IllustrativeTransactions

PayingaLiability

IfGeorgelaterpays$1,500owedfortheequipment,bothassets(Cash)andliabilities(AccountsPayable)willdecrease,butequipmentwillbeunaffected.

Theaccountingequationisstillinbalanceafterthistransaction.IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$11,500$1,500$10,0004.-1,500(cash)-1,500(accountspayable)bal.$10,000$10,000IllustrativeTransactions

EarningRevenues

Supposethatthebusinessperformedaservicebyprintingthrowawaysforagarmentdealerandcollectedafeeof$3,000.Afterthistransaction,theassetsandowner’sequityofGeorgeRossPhotocopybothincrease.

IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$10,000$10,0005.+3,000(cash)

+3,000

(photocopy)

bal.13,00013,000feesearned)IllustrativeTransactions

NowassumethatGeorgeprovidesabigservicecallingforafeeof$2,500andGeorgeagreestowaitforthepayment.

Thistransactionincreasesbothassets(AccountsReceivable)andowner’sequity.Althoughmoneyisn’tcollectednow,therevenuehasbeenearned.

IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$13,000$13,000+2,500

(accountsreceivable)

+2,500

(photocopy

feesearned)

bal.15,50015,500

IllustrativeTransactions

CollectingAccountsReceivable

IfitisassumedthatamonthlaterGeorgereceives$2,500fromtheclientintransaction6,theassetCashisincreasedandtheassetAccountsReceivableisdecreased.

IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$15,500$15,5007.+2,500(cash)-2,500(accountsreceivable)

bal.15,50015,500

IllustrativeTransactions

PayingExpenses

Supposethattheagencypaid$600toasecretaryforthefirsttwoweeks’wages.Thistransactiondecreasesassets(Cash)andowner’sequity.IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$15,500$15,500–600

(cash)

-600

(officewagesexpense)

bal.14,90014,900IllustrativeTransactions

WithdrawingMoneyfromBusiness

Georgewithdraws$800frombusinessaccounttopayforpersonallivingexpenses.

Thistransactiondecreasestheassetsandowner’sequityofthecompany.

IllustrativeTransactions

Assets=Liabilities+Owner’sequity

$14,900$14,9009.–800(cash)-800(withdrawal)bal.14,10014,100WEARESAILINGRIGHTALONG!!AccountsCHAPTER4AccountsAllthebusinesstransactionsshouldbesortedoutandclassified.

Torecordthetransactionsintheaccountscanmakefinancialstatementsandotherreportspreparedquicklyandeasily.

Anaccountisthebasicstorageunitforaccountingdata.

AccountsAnaccountingsystemhasseparateaccountsforeachasset,eachliability,andeachcomponentofowner’sequity,includingrevenuesandexpenses.

AccountsDifferenttypesofbusinesseswillhavedifferentaccounts.

Manufacturingbusiness

Accountsforitsvariousmanufacturingcoststoreportthecostofgoodssold

Aretailer

Accountsforthepurchaseofitsstockmerchandise

AccountsTobeabletofindanaccountintheledgereasilyandtoidentifyaccounts,anaccountantoftennumbersthem.Inmostcases,athree-digitsystemisusedinabusiness.Inathree-digitsystem,thefirstdigitreferstothemajorfinancialstatementclassifications.

Accounts1Assets2Liability3Owner’sequity4Revenues5ExpensesAccountsNow,let’s

lookatan

exampleofGeorgeRossPhotocopyCompany

…AssetsCash(atBank)NotesReceivableAccountsReceivablePhotocopyFeesReceivablePhotocopySuppliesOfficeSuppliesPrepaidRentPrepaidInsuranceLandBuildingAccumulateddepreciation,BuildingPhotocopyEquipment

111112113114115116117118141142

143144

LiabilitiesNotesPayableAccountsPayableUnearnedPhotocopyFeesWagesPayableMortgagePayable

Owner’sEquityGeorgeRoss,CapitalGeorgeRoss,WithdrawalsIncomeSummary

RevenuesPhotocopyFeesEarned211212213214221

311312313

411

ChartofAccountsforGeorgeRossPhotocopyAccumulateddepreciation,PhotocopyEquipmentOfficeEquipmentAccumulatedDepreciation,OfficeEquipment

145146

147ExpensesOfficeSalaryExpenseUtilityExpenseTelephoneExpenseRentExpenseInsuranceExpensePhotocopySuppliesExpenseOfficeSuppliesExpenseDepreciationExpense,BuildingsDepreciationExpense,PhotocopyEquipmentDepreciationExpense,OfficeEquipment

511512513514515516517

541542

543ChartofAccountsforGeorgeRossPhotocopyCommonlyUsedAccountsThedesignationofaccountsmustreflectthenatureofthecompany’sbusinessandtheneedsofitsmanagement.

Inaccounting,someimportantaccountsareusedwidelyandcommonlyineachcompany.

CommonlyUsedAccountsAssetAccounts

LiabilityAccountsOwner’sEquityAccounts

AssetAccounts

AssetaccountsAssetAccounts

AssetAccounts

CurrentAssets

Long-termAssets

Cash

NotesReceivable

AccountsReceivable

PrepaidExpenses

Physicalsubstance

IntangibleassetsCurrentAssetsCash

“Cash”istheaccountusedtorecordincreasesanddecreasesincash.

TheincreaseofcashisrecordedbydebittoCashandthedecreaseisrecordedbyacredittoCash.

CashWhatisCash?Cashconsistsofmoneyoranymediumofexchangethatabankwillacceptatfacevaluefordeposit,andmoneyinabankorbanks.Thecashaccountalsoincludescashonhandsuchasthatinacashregisterorasafe.

CurrentAssetsNotesReceivable

Oftenthedebtorsignsapromissorynote,whichservesasevidenceofthedebt.NotesReceivable

AccountsReceivableMoreformalthanNotesReceivableApromissorynoteisawrittenpromisetopayadefinitesumofmoneyatafixedfuturedate.Whenthecompanyreceivesthenote,thenotesreceivablewillbedebited.Thecollectionofnoteswillberecordedbythecredittonotesreceivable.

Interest-bearingnotes

Non-interest-bearingnotesCurrentAssetsAccountsReceivable

Companiesoftensellgoodsandservicestocustomersonthebasisofthecustomers’promisestopayinthefuture.Thesesalesarecalledcreditsales,orsalesonaccount,andthepromisestopayareknownasaccountsreceivable.

AccountsReceivableTheincreaseofAccountsReceivableisdebitedtoAccountsReceivableandthedecreaseiscredited

toAccountsReceivable.

CreditsalesincreaseAccountsReceivable.ThecollectionsofthecreditsalesdecreaseAccountsReceivable.

CurrentAssetsPrepaidExpenses

Thepaymentofthegoodsorservicesisoftenmadebeforetheyarereceivedorused.Theseprepaidexpensesareconsideredasassetsbeforetheyareuseduporexpired.

E.g.PrepaidInsurance

OfficeSupplies

Long-termAssetsLong-termassetsareacquiredforuseintheoperationofthebusinesswithausefullifeofmorethanoneyearandarenotresoldtocustomers.

Physicalsubstance

Intangibleassets

Long-termAssetsLand

Physicalsubstance

Buildings

Equipment

DebitCreditPurchaseSalePurchaseSaleBuildingandequipmentsownedbyacompanymustbedepreciatedduetothewearandtear.

Long-termAssetsEquipment

OfficeEquipment

accountStoreEquipmentaccount

TrucksandAutomobilesaccount

MachineryandEquipment

account…Long-termAssetscomputersoftwarepatentsCopyrightsTrademarkbrandnameFranchisesmotionpicturefilmscustomerlistsmortgageservicingrightsLicensesimportquotascustomerandsupplierrelationships.

Intangibleassets

Long-termAssets

Intangibleassets

IASdefinesanintangibleassetasidentifiablenon-monetaryassetwithoutphysicalsubstance.

Anintangibleassetisidentifiablewhenitiscapableofbeingseparatedandsold,transferred,licensed,rented,orexchanged,eitherindividuallyoraspartofapackage.Long-termAssetsThecostofintangibleassetsshouldbeallocatedtotheaccountingperiodsthattheybenefit.Suchallocationiscalledamortization.

Intangibleassets

LiabilityAccountsLiabilityaccountsShort-termLiabilities

Long-TermLiabilities

LiabilityAccountsLiabilityAccounts

NotesPayable

AccountsPayable

OtherShort-TermLiabilities

Short-termLiabilitiesNotesPayable

NotesPayable

NotesReceivableItisusedtorecordincreasesanddecreasesinpromissorynoteamountsowedtocreditors.Credited?Debited?Short-termLiabilitiesItusuallyarisesastheresultofthepurchaseofmerchandise,services,supplies,orequipmentoncredit.

AccountsPayable

AccountsPayable

AccountsReceivableCredited?Debited?Short-termLiabilitiesOtherShort-TermLiabilities

Thecurrentportionoflong-termliabilityWagesPayableTaxesPayableRentPayableInterestPayableCustomersAdvances(UnearnedRevenues)Long-termLiabilitiesLiabilitiesthatwillnotbedueduringthenextyearorduringthenormaloperatingcyclearelistedaslong-termliabilities.NotesdueinmorethanoneyearLong-termliabilities:BondsPropertymortgagesOwner’sEquityAccountsOwner’