Question

Describing

1.    Accounts receivable—

2.    Note receivable—

3.    Inventories—

4.    Investments—

5.   Prepaid expenses—

6.   Land—

7.   Equipment, net—

8.    Patent—

9.    Note payable—$

10. Interest payable—

11. Common stock—

Answer 1

1)Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Said another way,account receivable are amounts of money owed by customers to another entity for goods or services delivered or used on credit but not yet paid for by clients.

2)Notes receivable is a balance sheet item, that records the value of promissory notes that a business is owed, and should receive. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement.

3)Inventory is the collection of unsold products waiting to be sold. Inventory is listed as a current asset on a company's balance sheet. Inventory is commonly thought of as the finished goods a company accumulates before selling them to end users. But inventory can also describe the raw materials used to produce the finished goods, goods as they go through the production process (referred to as "work-in-progress" or WIP), or goods that are "in transit."

4)An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

5)Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired.

6)A long-term asset account that reports the cost of real property exclusive of the cost of any constructed assets on the property. Land usually appears as the first item under the balance sheet heading of Property, Plant and Equipment. Generally, land is not depreciated.

7)Equipment are tangible assets and long term assets. Net equipments means gross equipments less accumulated depreciation.

8)A patent is considered an intangible asset; this is because a patent does not have physical substance, and provides long-term value to the owning entity.

9)A note payable is a written promissory note. Under this agreement, a borrower obtains a specific amount of money from a lender and promises to pay it back with interest over a predetermined time period.A note payable is classified in the balance sheet as a short-term liability if it is due within the next 12 months, or as a long-term liability if it is due at a later date.

10)Interest payable is the interest expense that has been incurred (has already occurred) but has not been paid as of the date of the balance sheet.

11)Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.