Summary

Assets

• Current Assets: cash and assets which can be turned into cash within 1 year by normal operations of business
  • Cash - currency, checks, bank drafts and money orders (Cash in hand & at bank).
  • Marketable Securities - stocks or bonds which can be easily bought or sold in market.
  • Notes Receivable (N/R) - promissory notes from debtors to pay certain amount of money usually with interest
  • Accounts Receivable (A/R) - debtors arising out of credit sales (no interest).
  • Inventory - merchandise, raw materials, and materials in the process of production.
  • Office Supplies - materials acquired for use in office (papers & stationery).
  • Prepaid Expenses - advance payment for expenses such as insurance and rent.
• Non-Current Assets: can be used for more than 1 year not for resale
  • Land - no depreciation.
  • Building - use by business for its normal operations.
  • Equipment - machines, factory equipment, store equipment, office equipment, office furniture & fixture, and delivery equipment.