Petty Cash Account

Petty Cash Account
FREE QuickBooks Tutorials
Sign-Up to my newsletter and receive access to
This QuickBooks Tutorial FREE
I'll give you access to Over 100 FREE QuickBooks Tutorials just for signing up to my newsletter!
Petty Cash Account
Video Length: Video Size: File Size:
4 Minutes 14 Seconds Up To Full Screen 7256 KB

QuickBooks Online Training
 
Video Tutorial Over QuickBooks Chart Of Accounts - Assets

Assets

Petty Cash is a current asset.

Assets are things your company owns. They're usually divided into two groups–current assets and fixed assets:

  • Current assets are generally numbered from 1000 – 1499. These are assets that you can easily turn into cash, such as checking accounts, savings accounts, money market and CD accounts, accounts receivable, and inventory.

    So you might want to use account number 1100 for your company checking account because a checking account is a current asset.

  • Fixed assets are usually numbered from 1500 – 1999. These are items with a minimum cost (for example, 500) that you would have to sell to generate cash. Automobiles, equipment, and land are examples of fixed assets. For example, suppose last year your company bought a new computer system for 1,100. Since the cost of the system was more than 500, the purchase was entered to an asset account rather than to an expense account. Consult your accountant or tax preparer to determine the actual minimum cost you should use to determine fixed assets.

Leave Your CommentsPlease Remember To Leave Your Comments, Questions or Concerns Below!Leave Your Comments

Add Your Comments Here

Add a Video Review

There are currently no reviews for this video. Be the first to review it by clicking below!


Review this video...

Related videos:

QuickBooks Chart Of Accounts Overview
The chart of accounts is the backbone of your accounting system. That's why it's so important to understand how it works.