probable future economic benefits obtained or controlled by an entity
as a result of past transactions or events
ASSET
• CURRENT
• Cash
• Accounts
receivable
• Marketable
Securities
• Inventories
• Prepaid Asset
• NONCURRENT
• Tangible
Assets
• Intangible
Assets
• Investments
CURRENT ASSET
• in the form of cash,
• that will normally be
realized in cash,
• that conserve the use
of cash during the
operating cycle of a
firm or for one year,
whichever is longer.
CASH and Cash Equivalent
• Cash on hand
• Cash in bank
• Cash fund
• Cash equivalent
Accounts receivable
• monies due on accounts that
arise from sales or services
rendered to customers.
Marketable Securities
• (also labeled short-term
investments) are characterized
by their marketability at a
readily determinable market
price.
Inventories
• the balance of goods on hand
Examples:
a. Raw materials
b. Work in process
c. Finished goods
Prepaid asset
• an expenditure made in advance of the
use of the service or goods. It
represents future benefits that have
resulted from past transactions.
• Examples
a. Prepaid Insurance
b. Prepaid Rent
c. Prepaid Advertising
NON CURRENT ASSET
•
•
•
•
•
•
•
•
•
•
•
Land
Building
Machinery
Construction in progress
Accumulated depreciation
Investments
Goodwill
Patents
Trademarks
Franchises
Copyright
LIABILITIES
CURRENT
• Accounts
payable
• Unearned
income
• Advances from
customers
NONCURRENT
• Notes payable
• Bonds payable
• Deferred Tax
liability