Notes

MOLINA, LEAN CLAIRE B. 10-C
Bookkeeping - Refers to the daily tasks of recording and managing a business's financial information. Data like transactions, expense accrual and other financial information can be accounted for in the completion of bookkeeping tasks. Bookkeeping can be an essential function of running an organization, as it allows for tracking all financial information that is needed to make sound financing and operating decisions.

Bookkeeper - A professional who manages a business's financial transactions and recording. With an efficient bookkeeper, a business can ensure accurate and efficient recording and management of its financial assets and liabilities. This can aid in internal business decisions, like where to allocate a surplus of revenue, as well as external decisions, such as an investor's choice to fund the business's operations.

Interest receivables - Interest receivable is the amount of interest that has been earned, but which has not yet been received in cash. Many organizations consider this amount to be immaterial, and so will not record it.

Supplies - A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account.

Suplies unused - Supplies that are on hand (unused) at the balance sheet date are reported in the current asset account Supplies or Supplies on Hand.

Prepaid insurance - The amount of insurance premium which has been paid in advance in the current accounting period. However, the related benefits corresponding to the insurance amount prepaid will be received in the next accounting period. In other words, the insurance premium is paid before it is actually incurred.

Notes payable - 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.

Account payable - An account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers. Another common usage of "AP" refers to the business department or division that is responsible for making payments owed by the company to suppliers and other creditors.

Interest payable - The interest expense that has been incurred (has already occurred) but has not been paid as of the date of the balance sheet. [Interest payable does not include the interest for periods after the date of the balance sheet.]

Salaries payable - A liability account that contains the amounts of any salaries owed to employees, which have not yet been paid to them. The balance in the account represents the salaries liability of a business as of the balance sheet date.