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.