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Finances
+Terminology Total assets
Current asset
Non-current asset
Total liability
Current liability
Non-current liability
Net worth
Equity
Debt-to-Equity Ratio
Value
Inventory
Non depreciable
Depreciable
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+Current Assets
Current assets: items that can quickly be converted to cash or that will be sold within 12 months
Examples:
Cash
Checking & savings accounts
Stocks
Bonds & cash value of life insurance
Money others owe you
Current non-depreciable inventory
+Non-Current Assets
Non-current assets: items that have a useful life of more than one year and are used in the business
Examples:
Non-current, non-depreciable inventory
Land
+Total Assets=
Current assets + non-current assets
+Current Liability
Current liability: accounts and notes payable, this year’s part of non-current liabilities
Examples:
Mortgage due this year
Credit card bill
+Non-Current Liability
Non-current liability: debts not due this year
Examples:
Mortgage
+Total Liabilities=
Current liabilities + non-current liabilities
+Net Worth (equity)=
Total assets – total liabilities
+Debt-to-Equity
Ratio=total liabilities/
net worth
+Value: monetary
worth
+Inventory: an itemized list of things owned by a business with the beginning value &
depreciated valueNON
DEPRECIABLE Items that will be used up or
sold within a year
Feed, supplies, etc.
DEPRECIABLE Items that have a useful life
of more than one year and lose value because of age, wear or becoming out of date because of technology advancements
Recommended