ACCOUNT

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We assign "accounts" to the families of the same "items" that have been the objects of business transactions. The following are the common accounts that companies use all around the world and the Families they belong to:

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- LIABILITY ACCOUNTS -

- present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

- increase with credits, decrease with debits

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Accounts payable - (opposite of Accounts Receivable) payables to suppliers

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Notes Payable - (opposite of Notes Payable) payables that arise from loans obtained from other persons or companies

 

Salaries payable - for unpaid salaries of employees. Another applicable account is "Wages Payable"

 

Interest Payable - unpaid interests from loans and other liabilities

 

Taxes Payable - for unpaid taxes

 

Loans payable - for loans obtained

 

Unearned revenue -  advance payments from customers 

 

Dividends payable - for dividends declared (income distribution) by the company that remained unpaid

 

Mortgage payable - loans that have been backed by collateral

 

Bonds payable - bond instruments issued by the company ​​​

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