Account categories

Small Business Financial Manager uses the following account categories.

Account category Debit or credit FSIC Description

1110 Cash and cash equivalents D CCE Includes all assets that can be turned to cash in the near term. This includes cash accounts, marketable securities, and so forth.

1111 Credit card receipts D CCE Where credit card receipts are posted. These are essentially the same as cash.

1121 Accounts receivable D AR Includes only trade AR accounts. Special accounts set up for employee receivables should be classified as other current assets.

1122 Allowance for bad debts D ABD Applies only to the trade AR accounts. It is a contra account where the allowance for noncollectible or doubtful AR is recorded.

1130 Inventory D INV Includes all types of inventory accounts.

1190 Other current assets D OCA Includes all current assets not specifically designated in other asset categories.

1211 Property, plant, and equipment D PPE Includes only the cost of the assets. A separate category is provided for the accumulated depreciation.

1212 Accumulated depreciation D AD Contra account used to record the accumulated depreciation for the assets (plant, property, and equipment).

1290 Other non–current assets D ONCA For all non–current assets except property, plant, and equipment.

2110 Accounts payable C AP For trade accounts payable only.

2120 Short-term debt C STD Records debt that will be fulfilled within the current year.

2130 Credit cards payable C OCL For accounts where credit card purchases are recorded.

2190 Other current liabilities C OCL Includes all other current liabilities except accounts payable and short-term debt.

2210 Long-term debt C LTD Records debt that is more than one year in duration.

2240 Other non–current liabilities C ONCL Records all non–current liabilities other than long-term debt.

3100 Equity C EQ Includes capital stock or other paid-in capital. Accumulated dividends are also included in this group.

3200 Retained earnings C RE Includes retained earnings for all prior years. If a special account is used for closing revenue and expense accounts during year-end processing, it should be either in this category or in Revenue/expense clearing.

3999 Revenue/ expense clearing C RE Reserved for the account used to close out the revenue and expenses as part of the year-end closing procedures.

4000 Net sales C NS Includes all sales accounts as well as returns and allowances.

5000 Cost of sales D COS Includes all direct costs of sales.

6100 Amortization & depreciation exp D ADE Includes the expense to record depreciation and amortization costs. This is a non-cash type expense.

6200 Bad debt expense D BDE Includes all bad debt expense. This is a non-cash expense.

6300 Officer compensation D OC Includes only accounts that are used to record expenses for compensation to officers of the company.

6400 Interest expense D INT Includes only accounts to record interest expense.

6500 Operating expense D OOE Includes all expenses that are not specifically identified elsewhere.

7100 Non–Operating income C ONOI Includes all revenue not identified as net sales.

7200 Non–Operating expense D ONOE Records any other non–operating expense.

8000 Income taxes D IT Records state and federal income taxes paid. Income tax refunds should also be recorded in this group.

Questions:

Account category	Debit or credit	FSIC	Description
1110 Cash and cash equivalents	D	CCE	Includes all assets that can be turned to cash in the near term. This includes cash accounts, marketable securities, and so forth.
1111 Credit card receipts	D	CCE	Where credit card receipts are posted. These are essentially the same as cash.
1121 Accounts receivable	D	AR	Includes only trade AR accounts. Special accounts set up for employee receivables should be classified as other current assets.
1122 Allowance for bad debts	D	ABD	Applies only to the trade AR accounts. It is a contra account where the allowance for noncollectible or doubtful AR is recorded.
1130 Inventory	D	INV	Includes all types of inventory accounts.
1190 Other current assets	D	OCA	Includes all current assets not specifically designated in other asset categories.
1211 Property, plant, and equipment	D	PPE	Includes only the cost of the assets. A separate category is provided for the accumulated depreciation.
1212 Accumulated depreciation	D	AD	Contra account used to record the accumulated depreciation for the assets (plant, property, and equipment).
1290 Other non–current assets	D	ONCA	For all non–current assets except property, plant, and equipment.
2110 Accounts payable	C	AP	For trade accounts payable only.
2120 Short-term debt	C	STD	Records debt that will be fulfilled within the current year.
2130 Credit cards payable	C	OCL	For accounts where credit card purchases are recorded.
2190 Other current liabilities	C	OCL	Includes all other current liabilities except accounts payable and short-term debt.
2210 Long-term debt	C	LTD	Records debt that is more than one year in duration.
2240 Other non–current liabilities	C	ONCL	Records all non–current liabilities other than long-term debt.
3100 Equity	C	EQ	Includes capital stock or other paid-in capital. Accumulated dividends are also included in this group.
3200 Retained earnings	C	RE	Includes retained earnings for all prior years. If a special account is used for closing revenue and expense accounts during year-end processing, it should be either in this category or in Revenue/expense clearing.
3999 Revenue/ expense clearing	C	RE	Reserved for the account used to close out the revenue and expenses as part of the year-end closing procedures.
4000 Net sales	C	NS	Includes all sales accounts as well as returns and allowances.
5000 Cost of sales	D	COS	Includes all direct costs of sales.
6100 Amortization & depreciation exp	D	ADE	Includes the expense to record depreciation and amortization costs. This is a non-cash type expense.
6200 Bad debt expense	D	BDE	Includes all bad debt expense. This is a non-cash expense.
6300 Officer compensation	D	OC	Includes only accounts that are used to record expenses for compensation to officers of the company.
6400 Interest expense	D	INT	Includes only accounts to record interest expense.
6500 Operating expense	D	OOE	Includes all expenses that are not specifically identified elsewhere.
7100 Non–Operating income	C	ONOI	Includes all revenue not identified as net sales.
7200 Non–Operating expense	D	ONOE	Records any other non–operating expense.
8000 Income taxes	D	IT	Records state and federal income taxes paid. Income tax refunds should also be recorded in this group.