Objective of this blog is to share my oracle knowledge and stuff that I came across online, during work or books with the people who are working in oracle Wednesday, July 3, Assets, Liabilities, Equity, Revenue, and Expenses Greetings! Assets, Liabilities, Equity, Revenue, and Expenses. We will define each account type and discuss its unique characteristics.
Current Liabilities - money that has to be repaid within 1 year Notes Payable are loans the company has to pay back within 1 year. Accounts Payable is money the company owes its suppliers and vendors for raw materials, inventory, that kind of stuff. Current Portion of Long-term Debt would be like if you had a year loan, then money you had to pay during the next 1 year as part of that year loan.
Accrued Expenses - is basically a labor related category. Wages, salary, payroll taxes, employee benefits like pension funds go here.
Non-Current Liabilities - money that doesn't have to be paid within 1 year. Non-current Portion of Long Term Debt - remember that year loan we talked about before? Well, the other 9 years of the year loan would go here. Subordinated Officer Loans are kind of tricky. Say an officer of the company or an owner loans money to the company.
OK, now say the company needs more money so it goes to a bank to get another loan. Well, the bank loan would take a higher priority than the Officer Loan, so the Officer Loan is said to be subordinated.
It means they are kind of put on standby. Generally, these loans are considered to be equity, rather than debt, when they are subordinated. Contingent Liabilities - are possible liabilities, but aren't usually listed in the balance sheet itself, and are listed in the footnotes. The company hopes that these liabilities never actually develop.
A good example is ongoing lawsuits. If the company has been sued, or reasonably expects that it will be sued, but doesn't know how much it will have to pay to settle the suit if anything it will be mentioned here. Another example is if the company acted as a guarantor on a loan for a third party, there is the possibility that the third party will default on the loan, and then the company will have to pay, so that would also go here.
Equity Equity is what is left over, the value the owners have. It's sometimes called Net Worth or Owner's Equity.Assets - Liabilities = Owner's (or Stockholders') Equity.
Owner's or stockholders' equity also reports the amounts invested into the company by the owners plus the cumulative net income of the company that has not been withdrawn or distributed to the owners.
Then, we will cover the balance sheet equation and define/discuss Assets, Liabilities, and Stockholders' Equity. We will introduce debit-credit bookkeeping and do lots of practice in translating transactions into debits and credits.
Record a group of business transactions, in column form, involving changes in assets, liabilities, and owner’s equity. The accounting equation is stated as assets equals liabilities plus owner’s equity. The accounting formula represents an equation showing the relationship between the assets, liabilities, and owners' equity of an ongoing business.
The accounting formula represents an equation showing the relationship between the assets, liabilities, and owners' equity of an ongoing business. or limited liability company, then the owner or.
Aug 12, · The easiest way to keeps debits and credits, and Assets = Liabilities + Equity (Accounting Equation) straight. This is how i passed the CPA Exam to become a . Balance Sheet Template is a financial statement of a company.
It shows the assets, liabilities, equity capital, total debt, etc. at a given point of time.