Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net...
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Transcript of Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net...
Maintaining Records
Animal Science I
Terms Asset
Something of value you own
Liability Debts
Net Worth = total assets – total liabilities
Terms Inventory
An itemized list of things owned
Includes beginning and depreciated value
Assets Two kinds of assets
Current
Items that can quickly be converted to cash or that will be sold in the next 12 months
Ex. Cash, checking, savings, stocks, non-depreciable inventory (crops, livestock)
Assets
Non-current
Have useful life of more than one year
Land, machinery, breeding livestock
Liabilities Two types
Current Due in the next 12 months Ex. Monthly payments, mortgage, bills
Non-Current Due after the next 12 months Mortgage payments left after this year
Net-Worth DO THE MATH
Net-worth = total assets – total liabilities
Total Assets = current assets + non-current assets
Total Liabilities = current liab. + non-current liab.
Inventory Non-depreciable
Items that will be sold or used in next 12 months
Ex. Feed, supplies, animals to be sold
Inventory Depreciable
Items with useful life of more than one year and lose value
Reasons for decline in value Age, wear, out-of-date due to technology. LAND IS NOT DEPRECIABLE
What is it? Bags of Feed Breeding Horses Cars Land Next 3 months
house payment Savings Tractor and
Equipment
Current Non-Dep. Asset N-C, Dep., Asset N-C, Dep., Asset N-C, Non-Dep, Asset Current, Liability
Current, Non-Dep. Asset N-C, Dep., Asset