MGMT1A - Chapter 2: Accounting for
Business Transactions fully solved &
updated
Cash - answer asset account; a company's cash balance
Accounts Receivable (A/R) - answer asset account; held by a seller,
promises of payment from customers to sellers -> increases by
credit sales
often phrases as sales "on account" or "on credit"
Notes Receivable - answer asset account; held by a lender; a
borrower's written promise to pay the lender a specific sum of
money on a specified future date
Prepaid accounts (or expenses) - answer asset account; Assets that
arise from prepayment of future expenses. Examples are prepaid
insurance and prepaid rent.
More assets - answer asset account; supplies, equipment, buildings,
and land
Accounts Payable (A/P) - answer liability account; held by a buyer; a
buyer's promise to pay the seller later for goods and services
received
payable arises from purchases of merchandise for resale, supplies,
services, and other items
Notes Payable - answer liability account; held by a borrower; a
written promissory note to pay a future amount at a future date
Business Transactions fully solved &
updated
Cash - answer asset account; a company's cash balance
Accounts Receivable (A/R) - answer asset account; held by a seller,
promises of payment from customers to sellers -> increases by
credit sales
often phrases as sales "on account" or "on credit"
Notes Receivable - answer asset account; held by a lender; a
borrower's written promise to pay the lender a specific sum of
money on a specified future date
Prepaid accounts (or expenses) - answer asset account; Assets that
arise from prepayment of future expenses. Examples are prepaid
insurance and prepaid rent.
More assets - answer asset account; supplies, equipment, buildings,
and land
Accounts Payable (A/P) - answer liability account; held by a buyer; a
buyer's promise to pay the seller later for goods and services
received
payable arises from purchases of merchandise for resale, supplies,
services, and other items
Notes Payable - answer liability account; held by a borrower; a
written promissory note to pay a future amount at a future date
