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Asset
Accounts
Anything
owned, whether tangible (a physical item) or intangible (the right to
something) is an asset. Assets
are generally separated into two groups:
Current
Assets - Cash
and other assets that will be used up, or sold, or converted to cash
within the normal operation of business.
Plant
Assets - Permanent
or fixed assets, such as land, buildings, equipment, etc.
Common
Asset Accounts:
Current
Assets:
• Cash
- Includes the cash at the store & in the bank.
•
Accounts Receivable -
What others owe you.
•
Notes Receivable - Loans
made to others.
•
Prepaid Insurance -
Premiums that are paid in advance.
•
Office Supplies - Are
assets from purchase to use.
•
Inventories - Ready to be
sold and work in progress.
Plant
Assets:
•
Equipment - Office,
production, store equipment.
•
Buildings - Your place of
business - garage, plant, store.
•
Land - Should have it's
own account - doesn't depreciate.
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