ACCOUNT TITLES

REGINE PATINDOL

ACCOUNT DESCRIPTION ACCOUNT

TITLE TYPE
Includes cash on hand (bills, coins, checks, money
orders, or bank drafts), cash deposited in bank (saving
accounts, or checking account), and cash fund (petty
CASH cash fund, or payroll fund) which are unrestricted in use. ASSET
Cash equivalents are short-term, highly liquid
investments that are acquired three months before
maturity or earlier.
This refers to open accounts which represent the
ACCOUNTS amount of money owed by the costumers to the
business. This arises from the business rendering ASSET
RECEIVABLE services or selling goods to costumers.
PREPAID This refers to cost of insurance that is paid in advance
and includes a future accounting period. ASSET
INSURANCE
This represents the amount of money owed by the
costumer or debtor to the business evidenced by a
NOTES promissory note. A promissory note is written and ASSET
RECEIVABLE signed promise to pay by the maker to the payee a sum
certain in money on demand at a specified future date.
This represents asset held for sale in the ordinary
course of business, in the process of production for sale ASSET
INVENTORIES or in the form of materials or supplies to be consumed in
the production process or in the rendering of services.
UNUSED This represents supplies which remain unused at the ASSET
end of the accounting period.
SUPPLIES
This represents manual or automated machines used in
the business and they include photocopying equiment,
EQUIPMENT computers, laptops, ring binders, laminating machines, ASSET
delivery vehicles, and vans, among others.
FURNITURE This represents assets such as tables, chairs, filing
cabinets, and display racks.
AND ASSET
FIXTURES
This refers to the physical structure owned and used by
BUILDING the business to conduct its business operations.
ASSET
This refers to the physical site owned by the business
where the building is situated. It is not subject to
LAND depreciation. ASSET
ALLOWANCE
This is contra-asset or a valuation account which refers
FOR to the portion of accounts receivable that is estimated to
DOUBTFUL be uncollectable at the end of a particular accounting
ASSET
ACCOUNTS period.
This is a contra-asset or a valuation account which
ACCUMULATED refers to the aggregrate portion of the total cost of
property, plant, and equipment that has been charged to ASSET
DEPRECIATION depreciate expense.
ACCOUNT DESCRIPTION ACCOUNT
TITLE TYPE
ACCOUNTS This refers to open accounts which represents the
amount of money owed by the business to creditors or LIABILITY
PAYABLE suppliers.

NOTES This represents the amount of money owed by the

business to the supplier or creditor evidenced by a LIABILITY
PAYABLE promissory note.
LOANS This represents the amount of money borrowed by the
business from third party creditors. LIABILITY
PAYABLE
MORTGAGE This represents the amount of money borrowed by the
business from a bank or a lending institution which is
PAYABLE secured by a collateral. LIABILITY
UNEARNED This represents cash collected by the business in
advance for a service or good that is yet to be rendered LIABILITY
REVENUES or delivered
TAXES This represents the amounts of taxes that a business
owes to the government but has not yet paid. LIABILITY
PAYABLE

PAYROLL This represents the amount a company owes to its LIABILITY

employees for wages earned but not yet paid.
PAYABLE
ACCRUED This refers to expenses that a company has incurred but LIABILITY
has not yet paid as of the end of an accounting period.
LIABILITIES
COMMON This represents the initial capital invested by the
shareholders when they purchase shares of the
STOCK company. EQUITY
RETAINED This represents the cumulative net income earned by
the company that has not been distributed to
EARNINGS shareholders in the form of dividends. EQUITY
ADDITIONAL Also known as capital surplus or share premium. This
represents the amount investors paid for shares in EQUITY
PAID IN excess of the nominal or face value of the shares.
CAPITAL
PREFERRED This refers to share of a company’s stock with dividends
that are paid out to shareholders before common stock EQUITY
STOCKS dividends are issues.

DIVIDENDS This refers to the amount of the after tax profit a

company has formally authorized to distribute to its EQUITY
PAYABLE shareholders, but has not yet paid in cash.
SERVICE This refers to the earnings made by any business that is
into rendering services. The term “revenue” is used and
REVENUE not “income” to distinguish that such an earning arises REVENUE
from the main line of operations of the business.
 ACCOUNT DESCRIPTION ACCOUNT
TITLE TYPE
This represents interest credited by the bank to the
INTEREST account of the business arising from bank deposits. REVENUE
Notice that the term “income” was used since earning
INCOME interests from bank deposits is not the main line of
operations of the business.
SALES This represents the earning made by any business that is
into selling goods or merchandise REVENUE
PROFESSIONAL This represents earnings made by professionals or
experts from rendering services to their clients. REVENUE
FEES Professional include lawyers, doctors, and certified
public accountats, among others.
UTILITIES This refers to costs associated with the usage of
electricity, water, and communication for a particular
EXPENSE accounting period. EXPENSES
SALARIES This refers to costs incurred associated with the services
rendered normally by permanent and full-time EXPENSES
EXPENSE employees who are paid on a regular basis, usually
monthly.
WAGES This refers to costs incurred associated with the services
rendered normally by contractual and temporary EXPENSES
EXPENSES employees and workers who are paid on an hourly rate
or based on output.
TAXES AND This represents costs incurred to register the business,
to acquire the right to operate, and to settle taxes EXPENSES
LICENSE
EXPENSE

COST OF This refers to the costs of merchandise or goods that EXPENSES

were sold during a particular accounting period.
SALES
SUPPLIES This refers to the amount of supplies that was used
during a particular accounting period.
EXPENSE EXPENSES
DOUBTFUL This refers to the amounts of accounts receivable that is
estimated as uncollectible and is recognized as an
ACCOUNT expense in the current accounting period. EXPENSES
EXPENSE
DEPRECIATION This refers to the allocated portion of the cost of
property EXPENSES
EXPENSE Plant and equipment charged to expense in the current
accounting period.
BANK This refers to any charges imposed by financial
institutions on their personal and business customers EXPENSES
FEES for account set-up, mainternance, and minor
transactional services

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