Accounting Concepts

The Accounting Equation-Assets


Assets
Cash
Accounts Receivable
Inventory
LESS Liabilities
Accounts Payable
Deferred Revenue
EQUALS Fund Balance
Beginning Fund Balance
Revenues
Expenses
Fund Additions
Fund Deductions


Assets Items owned by the University, such as, cash, accounts receivables, inventory, equipment, stocks, bonds, etc.
Accounts Receivable Money owed to the University for goods or services that have been provided by the University.

Example: The Student Union caters an event before payment is received. The money owed to the Student Union is an Accounts Receivable.

Inventory Equipment owned by the University or goods available for resale.

Example 1:You purchase a computer for your department. The computer is capitalized (coded with a capital object code) and becomes part of the University's inventory.

Example 2:The Bookstore buys books to sell. The books are inventory purchased for resale.


[continue]