Current Assets
Current Assets Definition
Expected to convert to cash or be utilized within one year or operating cycle
Long-term assets definition
Expected to be converted to cash or consumed in more than one year (or operating cycle if longer)
Current liabilities definition
Expects to satisfy within one year, or the operating cycle if longer and ordered by maturity date
Long-term liabilities definition
Obligations a company expects to satisfy in more than one year
Costs incurred to generate revenue and run the business
Expenses
Highly liquid short-term investments and can be converted into cash easily
Cash equivalents
Investments in debt and equity securities of other companies not intended for short-term sale
Long-term Investments
Amounts owed to suppliers for purchases of inventory or supplies on account
Accounts payable
Long-term loans from the bank
Notes payable
The purchase or manufacturing cost of merchandise inventory sold to customers
Cost of goods sold
Amounts due from customers for the sales of goods or services, usually collected within 30 to 60 days
Accounts receivable (AR)
Tangible assets used in operations, depreciated annually (except land)
Property, plant, and equipment (PPE)
Cash received in advance from a customer for goods or services to be provided in the future
Deferred Revenues
Formal debt securities issued by the company to a debt maker or group of investors
Bonds payable
Includes salaries, marketing, distribution, facilities maintenance, depreciation, and research and development
Selling, general, and administrative expenses
Goods that will be sold to customers
Inventory
Rental agreements "right-of-use" assets
Operating leases
Amounts owed for expenses incurred but not yet paid
Accrued liabilities
Obligations from an arrangement for the right to use an asset for a specific period
Leases
The cost of debt financing
Interest expense
Payments made in advance for future services
Prepaid expenses
No physical substance assets, like patents, copyrights, franchises, trademarks, and goodwill
Intangible Assets
The portion of long-term notes, loans, mortgages, and bonds payable that will be paid within the year
Current portion of long-term debt
Estimated retirement benefits for employees
Pension obligations
The cost of all income taxes
Tax expense