Assets

• Prepaid Expenses


  Expenses paid for by the business in advance to avoid paying cash in the future for a specific expense
• Accounts Receivable


  Claims against customers arising from the sale of services or goods on credit. Receivables supported by oral or informal promises to pay
• Notes Receivable


  A written pledge that a customer will pay the business a fixed amount of money on a certain date
• Current Assets

  Assets that can be easily converted into cash and cash equivalents typically within a year
• Allowance for Bad Debts


  The aggregate amount of estimated losses from uncollectible accounts receivable. Also known as "allowance for doubtful accounts"
• Assets


  Resources that help generate profit or revenues and maintain the operations of a business. Economic resources controlled by the business resulting from past events and providing future economic benefits
• Short-Term Investments


  Investments that are readily marketable and represent temporary investments of funds available for current operations, intended to meet working capital requirements
• Prepaid Expenses


  • Prepaid Rent: Rent paid in advance
  • Prepaid Insurance: Cost of insurance paid in advance
• Cash


  Includes money that a bank will accept for deposit or face value. It includes coins, bills, currency, checks, and bank deposits
• Assets


  • Resources or things of value owned by a company as a result of company transactions
  • Prepaid expenses that have not yet been used up or have not yet expired
  • Costs that have a future value that can be measured
• Inventories

  • Raw materials inventories: Materials or supplies to be consumed in the production process or in the rendering of services
  • Work-in-progress inventories: In the process of production for sale
  • Finished goods inventories: Held for sale in the ordinary course of business
• Equipment consists of

  • Machineries and other factory equipment
  • Transportation equipment (delivery truck)
  • Office equipment (desks, cabinets, chairs)
  • Computer equipment (server, personal computer, laptop)
  • Furniture and fixtures (desks, cabinets, movable partitions)
• Franchise


  • A type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, allowing the franchisee to sell a product or service under the franchisor's business name
• Accumulated Depreciation


  The total amount of depreciation expenses recognized since the asset was acquired and made available for use
• Intangible Assets


  • Copyrights
  • Franchises
  • Patent
  • Brand names
• Building


  • The structure owned by a business for use in its operation
• Copyright


  • The owner has the exclusive right to copy and distribute a creative work
• Intangible Assets

  Nonmonetary assets without physical substance held for use in the production or supply of goods and services
• Patent


  • Exclusive rights granted for an invention or product
• Land

  • A lot on which the building of the business has been constructed or a vacant lot which is to be used as future plant site. Land is not depreciable
• Brand names


  • Identifies a specific company, product, or service and differentiates it from similar brands within its category. Example: Apple, Nike, Coca cola, Advil
• Fixed or Non-current assets

  • Land
  • Building
  • Equipment
  • Accumulated Depreciation
  • Intangible Assets