Assets accounts

Of the accounts considered in the preceding illustrations, the plant-equipment and bank accounts are asset accounts, and the sales account is a liabihty account. To increase an asset, debit the asset account to increase a hability, credit the liability account. Conversely, to decrease an asset, credit the asset account to decrease a liability, debit the liabihty account. 

Cost and Asset Accounting presents a survey of accounting... 

The total liabilities are what a company owes and consist of the sum of current and long-term liabilities. Current liabilities are debts that must be paid within a year from the date of ffie balance sheet. The total current liabilities are ffie sum of the accounts payable, notes payable, accrued expenses payable, as well as income taxes payable from current assets. Accounts payable include such items as mvoices for raw materials, supplies, and others, that a company has purchased from suppliers and for which payment is due on a 30-, 60-, or 90-day basis. Notes payable include monies owed to banks and offier creditors as well as promissory notes. Accrued expenses payable include such entries as salaries, wages, mterest on borrowed funds, insurance premiums, pensions, and so on. Income taxes payable are ffie debt owed to federal, state, and local governments. These taxes are usually paid on a quarterly basis and commonly isolated from other expenses. 

Financial Reporting Financial reporting maps the finances of the company and provides the data for externals. The essential tasks are the bookkeeping and the annual statement of accounts. For bookkeeping, all significant business transactions are tracked. Furthermore, the accounts receivable, the accounts payable, and the assets accounting are documented. 

The critical nature of occupational safety management tools such as risk assessments and criticality and vulnerability studies reflects just a glimpse of the methodical tools of the occupational safety manager. The risk assessment itself looks at the value of organizational assets, accounting for both the criticality and vulnerability of the asset to determine the amount of the occupational safety investment. In itself the comprehensive process of risk analysis utilizes a process of critical thinking. 

Describe key financial measures of firm performance. The key financial measures of firm performance include return on equity return on assets accounts payable turnover profit margin asset turnover and accounts receivable turnover inventory turns property, plant, and equipment turns and cash-to-cash cycle. 

Many suppliers and merchants sell goods and services on account, and there is an expectation that these companies will receive payment from those who owe them cash. Realistically though, companies that extend credit or financing terms for payment do expect that there will be instances when payment will become uncollectable. The asset account on the balance sheet, accounts receivable, is adjusted to show what is owed less any payments that the company thinks it will not collect or any sales returns before cash being collected from the customer. 

---