Assets Account Classes
The assets account group
The table below shows the account classes in the asset account group.
| Account Class | Description |
|---|---|
| Asset | Any item of value owned by a company. This can include money that others owe you. This class encompasses all asset classes and can represent any type of asset. |
| Cash | Amount of cash on hand. You may add several cash accounts, one for petty cash and another for cash draws. |
| Bank | Any bank with which you hold an account. |
| Credit Card Receivable | Amount owed to you based on credit-card purchases from customers. You should set up a separate account for each type of credit card that you accept. |
Other asset account classes that
your accountant may want you to use
| Account Class | Description |
|---|---|
| Cash Equivalents | Short-term (3 months or less), easy-to-sell, low-risk investments held to meet short-term cash commitments rather than for investing or other purposes. |
| Marketable Securities | An investment that you can readily convert to cash. Usually, marketable securities are converted to cash or used to pay a current liability within a year. |
| Accounts Receivable | Amount that a customer owes you for goods and services provided. |
| Other Receivables | Other amounts that you are owed. Sometimes they arise from transactions outside of the company's regular business. |
| Allowance for Bad Debts | Estimated part of your accounts receivable that you will not be able to collect from customers. |
| Inventory | Items that you have on hand for sale to customers. |
| Current Asset or Other Current Asset | Any asset that you expect to convert to cash, sell, or use up in the short term, usually less than one year. If you use the other classes above, you would use the class Other Current Asset as opposed to Current Asset. |
| Long-Term Receivables | Amount you are owed that you will receive in the long-term, usually over one year. |
| Other Long-Term Investments | Amount you are owed that you will receive in the long-term through investments made outside of the company. These investments are not readily marketable and are usually held for more than one year. |
| Capital Asset | Assets with a long life, such as property or equipment. These items are used in the business and not intended for resale. |
| Accumulated Amortization and Depreciation | The depreciation expense recorded from the date you acquired a capital asset. |
| Other Asset | Any asset that doesn't fit into any of the above categories. |