Ferg- Exinfm.com Balance Sheet Accounts L6 (23)

This is the money you have in the bank.

• Cash

• Retained earnings

• Assets

• Expenses

It is the most liquid type asset; i.e. you can easily convert this asset into another asset.

• Cash

• Inventory

• Office supplies

• Service revenue

This is the money customers owe you for sales.

• Accounts receivable

• Accounts payable

• Expenses

• Liabilities

Generally, this asset should get converted into cash within 30 days.

• Accounts receivable

• Accounts payable

• Inventory

• Liabilities

This asset controls all of the products that you sell to customers.

• Inventory

• Office supplies

• Services

• Notes payable

This account will include additional control detail, such as product numbers, quantities on hand, and cost per unit.

• Inventory

• Depreciation

• Accounts payable

• Accounts receivable

This asset is a fixed asset consisting of physical facilities, machinery and equipment.

• Property, plant, equipment

• Property, plant, vehicles

• Property, plant, inventory

• Property, plant, payables

This asset has a useful life of several years.

• Property, plant, equipment

• Property, plant, vehicles

• Property, plant, buildings

• Property, plant, land

This account gets updated as we acquire and retire separate fixed assets.

• Property, plant, equipment

• Property, plant, assets

• Property, plant, equity

• Property, plant, liabilities

An account where we accrue expenses that we must pay in the near-term future (such as 30 days).

• Accounts payable

• Short term payable

• Long term payable

• Monthly payable