Classification of Accounts.pdf

7/28/2019 Classification of Accounts.pdf

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Abbreviations and

Acronyms Commonly

Used in Business and

Accounting

AAA American Accounting Association

ABC Activity-based costing

AICPA American Institute of Certified Public Accountants

CIA Certified Internal Auditor

CIM Computer-integrated manufacturing

CMA Certified Management Accountant

CPA Certified Public Accountant

Cr. Credit

Dr. Debit

EFT Electronic funds transfer

EPS Earnings per share

FAF Financial Accounting Foundation

FASB Financial Accounting Standards Board

FEI Financial Executives International

FICA tax Federal Insurance Contributions Act tax

FIFO First-in, first-out

FOB Free on boardGAAP Generally accepted accounting principles

GASB Governmental Accounting Standards Board

GNP Gross National Product

IMA Institute of Management Accountants

IRC Internal Revenue Code

IRS Internal Revenue Service

JIT Just-in-time

LIFO Last-in, first-out

Lower of C or M Lower of cost or market

MACRS Modified Accelerated Cost Recovery System

n/30 Net 30

n/eom Net, end-of-month

P/E Ratio Price-earnings ratio

POS Point of sale

ROI Return on investment

SEC Securities and Exchange Commission

TQC Total quality control


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Account Account Normal FinancialTitle Classifcation Balance Statement

Accounts Payable Current liability Credit Balance sheetAccounts Receivable Current asset Debit Balance sheetAccumulated Depletion Contra fixed asset Credit Balance sheet

Accumulated Depreciation Contra fixed asset Credit Balance sheetAdvertising Expense Operating expense Debit Income statementAllowance for Doubtful Accounts Contra current asset Credit Balance sheetAmortization Expense Operating expense Debit Income statementBonds Payable ZLong-term liability Credit Balance sheetBuilding Fixed asset Debit Balance sheetCapital Stock Stockholders equity Credit Balance sheetCash Current asset Debit Balance sheetCash Dividends Stockholders equity Debit Retained earnings statementCash Dividends Payable Current liability Credit Balance sheetCommon Stock Stockholders equity Credit Balance sheetCost of Merchandise (Goods) Cost of merchandise Debit Income statement

Sold (goods sold)Deferred Income Tax Payable Current liability/Long- Credit Balance sheet

term liabilityDelivery Expense Operating expense Debit Income StatementDepletion Expense Operating expense Debit Income statementDiscount on Bonds Payable Long-term liability Debit Balance sheetDividend Revenue Other income Credit Income statementDividends Stockholders equity Debit Retained earnings statementEmployees Federal Income Tax Current liability Credit Balance sheet

PayableEquipment Fixed asset Debit Balance sheetExchange Gain Other income Credit Income statementExchange Loss Other expense Debit Income statement

Factory Overhead (Overapplied) Deferred credit Credit Balance sheet (interim)Factory Overhead (Underapplied) Deferred debit Debit Balance sheet (interim)Federal Income Tax Payable Current liability Credit Balance sheetFederal Unemployment Tax Current liability Credit Balance sheet

PayableFinished Goods Current asset Debit Balance sheetFreight In Cost of merchandise Debit Income statement

soldFreight Out Operating expense Debit Income statementGain on Disposal of Fixed Assets Other income Credit Income statementGain on Redemption of Bonds Other income Credit Income statementGain on Sale of Investments Other income Credit Income statementGoodwill Intangible asset Debit Balance sheet

Income Tax Expense Income tax Debit Income statementIncome Tax Payable Current liability Credit Balance sheetInsurance Expense Operating expense Debit Income statementInterest Expense Other expense Debit Income statementInterest Receivable Current asset Debit Balance sheetInterest Revenue Other income Credit Income statementInvestment in Bonds Investment Debit Balance sheetInvestment in Stocks Investment Debit Balance sheetInvestment in Subsidiary Investment Debit Balance sheetLand Fixed asset Debit Balance sheetLoss on Disposal of Fixed Assets Other expense Debit Income statementLoss on Redemption of Bonds Other expense Debit Income statement

Classification of Accounts


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Account Account Normal FinancialTitle Classifcation Balance Statement

Loss on Sale of Investments Other expense Debit Income statementMarketable Securities Current asset Debit Balance sheetMaterials Current asset Debit Balance sheet

Medicare Tax Payable Current liability Credit Balance sheetMerchandise Inventory Current asset/Cost of Debit Balance sheet/Income

merchandise sold statementNotes Payable Current liability/Long- Credit Balance sheet

term liabilityNotes Receivable Current asset/Investment Debit Balance sheetOrganizational Expenses Operating expense Debit Income statementPatents Intangible asset Debit Balance sheetPaid-In Capital from Sale of Stockholders equity Credit Balance sheet

Treasury StockPaid-In Capital in Excess of Stockholders equity Credit Balance sheet

Par (Stated Value)Payroll Tax Expense Operating expense Debit Income statementPension Expense Operating expense Debit Income statementPetty Cash Current asset Debit Balance sheetPreferred Stock Stockholders equity Credit Balance sheetPremium on Bonds Payable Long-term liability Credit Balance sheetPrepaid Insurance Current asset Debit Balance sheetPrepaid Rent Current asset Debit Balance sheetPurchases Cost of merchandise Debit Income statement

soldPurchases Discounts Cost of merchandise Credit Income statement

soldPurchases Returns and Cost of merchandise Credit Income statement

Allowances sold

Rent Expense Operating expense Debit Income statementRent Revenue Other income Credit Income statementRetained Earnings Stockholders equity Credit Balance sheet/Retained

earnings statementSalaries Expense Operating expense Debit Income statementSalaries Payable Current liability Credit Balance sheetSales Revenue from sales Credit Income statementSales Discounts Revenue from sales Debit Income statementSales Returns and Allowances Revenue from sales Debit Income statementSales Tax Payable Current liability Credit Balance sheetSinking Fund Cash Investment Debit Balance sheetSinking Fund Investments Investment Debit Balance sheetSocial Security Tax Payable Current liability Credit Balance sheet

State Unemployment Tax Payable Current liability Credit Balance sheetStock Dividends Stockholders equity Debit Retained earnings statementStock Dividends Distributable Stockholders equity Credit Balance sheetSupplies Current asset Debit Balance sheetSupplies Expense Operating expense Debit Income statementTreasury Stock Stockholders equity Debit Balance sheetUncollectible Accounts Expense Operating expense Debit Income statementUnearned Rent Current liability Credit Balance sheetUtilities Expense Operating expense Debit Income statementVacation Pay Expense Operating expense Debit Income statementVacation Pay Payable Current liability/Long- Credit Balance sheet

term liabilityWork in Process Current asset Debit Balance sheet

Documents

Classification of Accounts.pdf