ACCOUNTING TUTORIALS
Part I Financial Statements and Basic Accounting Principles
Balance Sheet Sample
Explanation of Accounts:
-Cash: cash on hand/cash in the bank
-Accounts receivable: amount due from customers who have made purchases from the business on credit
-Merchandise inventory: costs of merchandise that has been acquired but not sold
-Accumulated depreciation: The portion of the equipment cost used up in the process of operating the business. Depreciation in the accounting context is the process of spreading out the cost of an asset over its useful life. Note that this is not an attempt to measure the economic loss of equipment value due to wear or age.
-Accounts payable: amounts owed to vendors/suppliers for purchases made on credit.
-Salaries: Wages owed to employees. These are a form of accrued liabilities.
