What are typical account titles used?

Answer 1

• Cash - the most liquid item in the balance sheet can be subdivided into cash on hand, cash in bank and/or cash funds (petty cash, sinking fund, payroll fund)
• Investments in stocks - are ownership of shares of a certain corporation
• Marketable securities - financial assets that are highly liquid and are held for re-selling mainly capitalizing on short-term price fluctuations.
• Accounts receivable - claims arising from the sale of goods and services on a credit basis.
• Notes receivable - almost the same as accounts receivable, the only difference is the fact that Notes receivable are evidence by a non-negotiable promissory note.
• Merchandise inventory - products that are acquired by a trading type ofbusiness with the primary purpose of re-selling them within the operating cycle.
• Prepaid expenses - right to receive benefits from expenses paid in advance.
• Furnitures and fixtures - as the term suggests, these are ofice equipment that doesn't necesarilly acquired for usage in normal operations rather furnitures and fixtures are acquired for office improvements and is deemed useful for succeeding years to come.
• Franchises - right to use a certain brand, design, technology and/or privileges belonging to a so-called franchisor (intangible assets)
• Accrued revenue receivable - right to collect income (usually income that is yet to be billed) that is already earned but not yet collected.