Assets: Defined as the economic resources which are owned by a business and are expected to benefit future operations.
Description of cash in accounting read more on:
Assets: the first element of accounting equation.
Classification of Assets
Current Assets: This includes cash and other assets which can easily be converted into cash, sold, or consumed during normal business operation.
Plant or fixed assets: a non-current asset that is more or less permanent in nature, not for sale and exclusively for business use only and has physical existence.
Current Asset Accounts Include:
6.Allowance for bad debts
9.Supplies on hand
Fixed Asset Accounts Include:
A cash is an asset. This is the most liquid asset of the business. This indicates that a business can pay it's obligations on time. When cash is received it is recorded during the period they are received.
What is cash on bank? read more on:
The following journal entry examples in accounting provide an understanding of the most common type of journal entries used by the business enterprises in their day to day financial transactions. Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. It is basically the summary of debits and credits of financial transactions with a note of which accounts these financial transactions will affect maintained in the chronological order.