ELEMENTS OF ACCOUNTING
Assets o Prepaid Tax
- Advance payment of tax
Value owned by a business
Current Assets
o Prepaid Advertising
Resources that could be realized/converted to cash - Prepayment of advertising maybe
easily or consumed one year or up to full ten years
Cash Fixed Assets
o Any medium of exchange that the bank
Tangible assets that are relatively permanent in
will accept
nature
o e.g. coin, cash, check, other
currencies, bank deposits, money Subjected to depreciation (Depreciation – value
orders, and bank drafts of asset decreases as time passes by) except for land
o Cash in Bank
o Cash on Hand o Furniture & Fixtures
Accounts Receivable - e.g. shelves, tables & chairs, desks
o Claims against debtors or customers for o Office Equipment
merchandise sold or services rendered - e.g. adding machines, fax
on account machines, computers
Notes Receivable o Delivery Equipment
o Claims against debtors/customers - Consist of automobile, tricycle,
evidenced by a written promise to pay jeepneys
later o Building
Supplies - Structure where the
o Goods used in the business business/operation is conducted
o Store Supplies o Land
- Used in the store - Lot on which the building is located
- e.g. tapes, boxes, empty bottles, or any vacant, productive piece of
bins land
o Office Supplies
- Supplies customarily used in the Intangible Assets
office
Rights & privileges enjoyed by the business
- e.g. folders, clips, bond papers,
stationeries, fasteners, etc. o Goodwill
o Shop Supplies - Patronage given by the public and
- Supplies used in the shop customers to a business because of
- e.g. in a printing shop: ink, toners, its quality products, good human
oil relations, outstanding services,
good location, affordable prices, etc.
Prepaid Assets
o Franchise
o Expenses paid in advance but services - Right awarded by the government
are not yet received for the use of public property like
o Prepaid Insurance bus, jeepney, broadcasting, etc.
o Copyrights
- Prepayment of insurance maybe a
year or two or even up to ten full - Right to receive due credit and
years acknowledgement protected by law
o Prepaid Rent for literary, intellectual, scientific,
and creative works
- Advance payment maybe a month
before or up to one whole year Liabilities
Assets o Prepaid Tax
- Advance payment of tax
Value owned by a business
Current Assets
o Prepaid Advertising
Resources that could be realized/converted to cash - Prepayment of advertising maybe
easily or consumed one year or up to full ten years
Cash Fixed Assets
o Any medium of exchange that the bank
Tangible assets that are relatively permanent in
will accept
nature
o e.g. coin, cash, check, other
currencies, bank deposits, money Subjected to depreciation (Depreciation – value
orders, and bank drafts of asset decreases as time passes by) except for land
o Cash in Bank
o Cash on Hand o Furniture & Fixtures
Accounts Receivable - e.g. shelves, tables & chairs, desks
o Claims against debtors or customers for o Office Equipment
merchandise sold or services rendered - e.g. adding machines, fax
on account machines, computers
Notes Receivable o Delivery Equipment
o Claims against debtors/customers - Consist of automobile, tricycle,
evidenced by a written promise to pay jeepneys
later o Building
Supplies - Structure where the
o Goods used in the business business/operation is conducted
o Store Supplies o Land
- Used in the store - Lot on which the building is located
- e.g. tapes, boxes, empty bottles, or any vacant, productive piece of
bins land
o Office Supplies
- Supplies customarily used in the Intangible Assets
office
Rights & privileges enjoyed by the business
- e.g. folders, clips, bond papers,
stationeries, fasteners, etc. o Goodwill
o Shop Supplies - Patronage given by the public and
- Supplies used in the shop customers to a business because of
- e.g. in a printing shop: ink, toners, its quality products, good human
oil relations, outstanding services,
good location, affordable prices, etc.
Prepaid Assets
o Franchise
o Expenses paid in advance but services - Right awarded by the government
are not yet received for the use of public property like
o Prepaid Insurance bus, jeepney, broadcasting, etc.
o Copyrights
- Prepayment of insurance maybe a
year or two or even up to ten full - Right to receive due credit and
years acknowledgement protected by law
o Prepaid Rent for literary, intellectual, scientific,
and creative works
- Advance payment maybe a month
before or up to one whole year Liabilities
