Essence of Learning Accounting

1 Cash is a media of exchange that is accepted by the bank for the amount. Cash also includes bank accounts, checks, and deposits. 2 Securities are usually in the form of stocks and bonds of other companies or in other securities that can be cashed immediately. With reselling it in the bank or in the stock market. 3 Notes receivable is a bill to the debitor with a written promise evidence that the debitor will pay a certain amount of money at the time that has been determined by agreement. 4 Account receivable, is a company’s bills on other party arising out because of the sales of goods or credit. 5 Merchandise inventory is a merchandise purchased to be resold it without changing the shape of the goods. 6 Deferrals and anticipation posts. The deferrals post are the expense paid, but it is not calculated yet as income expense until the balance sheet date. Anticipated post are revenues that already become the companys right, but it is not accepted yet as the payment. Deferrals post that becomes the company’s right are called as prepaid expense. Meanwhile, anticipation post that becomes the company’s right are called accrued income. The deferrals post, among others: a Prepaid salaries b Insurance c Prepaid rent Accruals post, among others: a Accrued interest b Accrued rent 7 Supplies are an inventory that completes the needs of the companys activities that are expected to be worn out in the company’s activities. Group which includes equipment, among others: a Store supplies, such as paper, wrapping, cartoons, and dos. b Office supplies such as office stationery, blank letter and envelope. 8 Long-term investment is a purchase of assets in the form of securities. The purpose is not to companys operations directly, but for other purposes. For example, the control of another company and the engagement in the company or its subsidiaries. b Fixed Assets Fixed assets is a wealth obtained in the form of ready to use or is built themselves. Fixed assets are divided into two groups, tangible assets and intangible assets. 1 Tangible assets, includes all items owned by company that is actively used in the operation of the company. Groups including tangible assets, among others: a Equipment b Machines c Automobile d Buildings e Land All types of fixed assets are depreciated, except land. 2 Intangible assets, the preference rights that are guaranteed by the law and have a useful life that give the benefit to the company. Intangible fixed assets, as follows: a Assets that have a period of limited usefulness as: 1. Patent, a copyright of an invention that given by the goverment and legislated. 2. Copyright is a copyright in a script provided by the government and protected by legislated. b Assets that have an unlimited period of usefulness, such as: