Introduction to Accounting: List of Main Accounting Items Classified in a Normal Balance Sheet.
Assets (Use of Funds=Will Generate Future Profits)
Liabilities & Shareholder’s Equity (Funds = To be Paid in the Future)
Current Assets Accounting Items Short-Term (ST) Liabilities Accounting Items
Inventories
Raw Materials, Work-in-Progress
Goods, Finished Goods
Trade and Other
Payables
Accounts Payable to Suppliers, Notes Payables, etc.
(The Co. owes money to Suppliers)
Trade and Other
Receivables
Accounts Receivables from Clients,
Other Payables, etc. (Clients owe
money to the Company)
Current Accruals
Known expenses from the Business Operations (<1
year) Ex: Salary Payables, Interest Payable, Taxes
Payable, Deferred Revenues,
Current Financial
Investments
Investment in Shares of others
companies (ex: From Public Listed
Companies: Apple, Inditex…)
Short – Term Debt
Bank Loans, Notes Payables, Bonds (<1-year due
date)
Prepayment for Current
Assets
Prepaid Expenses such Electricity,
Water Supply, or similar…
Long-Term (LT) Liabilities Accounting Items
Cash & Equivalents
Cash in hand, Cash in Bank
Accounts, Bank Deposits, etc..
Long Term Debt and
Non-Current Accruals
Bank Loans, Notes Payables, Bonds, Tax Payables
(>1-year due date)
Non-Current Assets Accounting Items Shareholder’s Equity Accounting Items
Intangible Assets
Software, Patents, etc.
Capital
Also known as Common Stock, Treasury Stock…The
Money paid-in by the Owner.
Property, Plant &
Equipment
Land, Office Buildings, Machinery,
Office Furniture, etc..
Retained Earnings
Reserves that comes from previous year profits.
Non-Current Financial
Investments
LT hold shares of other companies
Profit and Loss
The Profit or Loss, of the Year to Date business
performance.
(Accumulated
Depreciation and
Amortization)
Accumulated Depreciation of the
Non-Current Assets.
(Dividends)
Money cashed out of the Company by the Owner.