Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net...

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Maintaining Records Animal Science I

Transcript of Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net...

Page 1: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

Maintaining Records

Animal Science I

Page 2: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

Terms Asset

Something of value you own

Liability Debts

Net Worth = total assets – total liabilities

Page 3: 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

Page 4: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

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)

Page 5: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

Assets

Non-current

Have useful life of more than one year

Land, machinery, breeding livestock

Page 6: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

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

Page 7: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

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.

Page 8: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

Inventory Non-depreciable

Items that will be sold or used in next 12 months

Ex. Feed, supplies, animals to be sold

Page 9: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

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

Page 10: Maintaining Records Animal Science I. Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities.

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