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Liquidity Investing
Data Information
Liabilities
Are all obligations on the business like creditors, suppliers, and
sub-contractors.
Owners’ Equity
Are the remaining residuals in the business that will return on the
investors and the business owners after paying off all debts.
Dr. Eng. Ahmed Salah
Types Of Accounts
Assets:-
Current Assets:- Fixed Assets:-
Cash Land
Accounts Receivable Building
Notes Receivable (Interest Receivable) Equipment
Marketable Securities Furniture
Material Vehicles
Supplies
Inventory
Prepaid Accounts
Prepaid Payment (DP Paid)
Prepaid Rent
Prepaid Insurance
**DP: Down Payment
Dr. Eng. Ahmed Salah
Types Of Accounts
Liabilities:-
Short-term Liabilities:- Long-term Liabilities :-
Accrual (Salaries-Utilities) Bank Loans
Accounts Payable Mortgage
Notes Payable (Interest Payable)
Unearned Revenue (DP Received)
Provisions (Taxes)
Reserves (Risks)
Hence:-
Assets = Liabilities + {Capital + Revenues –
Expenses - Withdrawal} (2)
Then:
Net Income = Income
Therefore:
Assets= Liabilities+{Capital +/- Net Income – Withdrawal} (3)
**Positive Net Income = Net Profit
**Negative Net Income = Net Loss