Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be...
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Transcript of Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be...
![Page 1: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/1.jpg)
Financial record keeping
![Page 2: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/2.jpg)
AssetsCurrent Assets
a) Items that are tangible and can quickly be converted to cash or that will be sold within12 months
Examples are … cash on hand, checking and savings accounts, stocks, money others owe you, current non-depreciable inventory, livestock, crops and feed
• Non – Current Assets (Long term)a) Items that have a useful life of more than one
year and are used in the business – b) Examples… non-current , non depreciable
inventory, land
![Page 3: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/3.jpg)
Intermediate Assets – depreciable inventory
Examples .. Machinery, equipment , breeding livestock, cash value of insurance, personal vehicles, household goods
![Page 4: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/4.jpg)
LiabilitiesCurrent Liabilities – accounts and notes
payable, this year’s part of non-current liabilities
Non – current liabilities – mortgages and other debts not due this year
Total liabilities = current liabilities (debts) +
non – current liabilities (debts)
![Page 5: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/5.jpg)
Net Worth or owner’s Equity =total assets minus total liabilities
• Debt-to-Equity Ratio = total liabilities /net worth
![Page 6: Financial record keeping. Assets Current Assets a)Items that are tangible and can quickly be converted to cash or that will be sold within12 months Examples.](https://reader036.fdocuments.us/reader036/viewer/2022083006/56649f385503460f94c54553/html5/thumbnails/6.jpg)