Choosing the Right Account课件.ppt

Travel Accounts – Example 2 Employee drives his car to San Antonio and back in the same day. Expenses include mileage, a business lunch with an associate, and parking. Mileage and parking are non-overnight transportation (54807). Business lunch is charged to 54905. All on one voucher. Travel request is not required. 精品文档 Choosing the Right Account 精品文档 Types of Accounts Type Debit Credit Asset Increase * Decrease Liability Decrease Increase * Fund Equity Decrease Increase * Revenue Decrease Increase * Expense Increase * Decrease * Normal account balance (debit or credit). 精品文档 Assets Definition: Something owned by the university Examples: Cash, Inventory, Accounts Receivable, Land, Buildings Account Range: 10000-19999 Dept Use: Service centers and auxiliaries purchase inventory and deposit cash from sales; depts record cash deposits 精品文档 Liabilities Definition: Something the university owes to someone else Examples: AP payments owed to vendors; payroll payments owed to employees Account Range: 20000-29999 Dept Use: P-Card and travel card liability accounts; retainage for construction contracts 精品文档 Fund Equity Definition: Net worth Explanation: Amount left if you sold all of your assets and paid all of your liabilities (assets - liabilities = fund equity) Account Range: 30000-39999 Dept Use: Fund transfers between allowable fund codes; fund additions and deductions for prior-year expense/revenue 精品文档 Revenue Definition: Income earned and gifts received Examples: Gift from a donor; income earned on an endowment; recovered cost for a service center; sales revenue for an auxiliary Account Range: 40000-49999; 50050-50053;50055-50099; 55500-55999 Dept Use: Record gift from donor or revenue for an auxiliary 精品文档 Expense Definition: Expenditures needed for university operations Examples: Salaries; supplies; equipment Account Range: 50000-50049; 50054; 50100-55499; 55600-59999 Dept Use: Purchase supplies and equipment; compensate employees; travel expenditures 精品文档 Fr