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Accounting Elements
Chapter 2 of the Financial Accounting Course
 

Accounting Elements

5 Lessons
Image link to Asset Accounts
Lesson 1

Assets

Assets are classified into current and non-current assets. Current assets pertain to short-term resources while non-current assets refer to long-term properties.
Image link to Liability Accounts
Lesson 2

Liabilities

Like assets, liabilities are classified into current and non-current. Current liabilities refer to obligations that are expected to be paid in the near future (within the normal cycle or 1 year). Non-current liabilities refer to long-term obligations.
Image link to Stockholders Equity Accounts
Lesson 3

Stockholders' Equity

Capital (or equity) is what is left to the owners after all liabilities are paid using the company's assets. In short, capital is equal to assets minus liabilities. In corporations, it is known as stockholders' equity.
Image link to Revenue Accounts
Lesson 4

Revenues

Revenues (or income) are economic benefits received from doing business. In this lesson, we will discuss the types of revenues; know and understand what items are reported in the income statement.
Image link to Expense Accounts
Lesson 5

Expenses

Expenses are costs incurred in conducting business. In this lesson, you will find a list of common expense accounts. Each account is briefly described for you to know their nature.
Chapter Contents

The three major elements of accounting are: assets, liabilities, and capital. Assets refer to resources owned and controlled by a business; liabilities refer to economic obligations; and capital refers to what is left for the owners of the business after all obligations are settled. Other elements include income, expenses, and withdrawals.

This chapter provides a deep dive of the elements of accounting. It also presents lists of accounts that are commonly used for you to be familiar with items under each element.

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