Professional Documents
Culture Documents
1 Asset Accounts
1 Asset Accounts
Current Assets
Short-term cash funds such as Petty Cash Fund, Payroll Fund, Tax Fund, etc.
Cash Equivalents are short-term investments with very near maturity dates making them assets that are
"as good as cash".
Trading Securities are investments in stocks that are held with the purpose of trading (speculative
investments)
Accounts Receivable - receivables from customers arising from rendering of services or sale of goods
Notes Receivable - receivables from customers which are backed up by promissory notes
Other receivables representing claims from other parties such as: Rent Receivable, Interest
Receivable, Dividend Receivable, etc.
Allowance for Bad Debts - a contra-asset account deducted from Accounts Receivable. It represents the
estimated uncollectible amount of the receivable.
4. Inventories
Inventories are assets that are held for sale in the normal operations of the business. A service business
normally has no inventory account.
Prepayments consists of costs already paid but are yet to be used or incurred. Common prepaid expense
accounts include: Office Supplies, Service Supplies,Prepaid Rent, and Prepaid Insurance.
Non-Current Assets
PPE includes tangible assets that are expected to be used for more than one year. PPE accounts
include: Land, Building, Machinery, Service Equipment,Computer Equipment, Delivery
Equipment, Furniture and Fixtures, Leasehold Improvements, etc.
Take note that land that is not used by the business in its operations but is rather held for appreciation is
not part of PPE but of investments.
Accumulated Depreciation - a contra-asset account deducted from the related PPE account. It
represents the decrease in value of the asset due to continuous use, passage of time, wear & tear, and
obsolescence.
2. Long-Term Investments
3. Intangibles
An intangible has no physical form but from which benefits can be derived and its cost can be measured
reliably.
Intangibles include Patent for inventions, Copyright for authorship, compositions and other literary
works,Trademark, Franchise, Lease Rights, and Goodwill.
Assets which cannot be classified under the usual non-current asset categories
Includes: Advances to Officers, Directors, and Employees not collectible within one year, Cash in Closed
Banks, and Abandoned or Idle Property
There you have a list of asset accounts. Take note that different companies may use different (although
similar) sets of account titles. It will depend upon the company's business and industry, and what specific
accounts were adopted in its chart of accounts.