Financial Records

Obj. 6.02

Assets

An Asset is a personal item that you own

Current Assets are items that can be sold within one year. (livestock, crops)

Non-Current Assets are items that are used for more than one year. (breeding livestock, land)

Liabilities

A liability is debt

Current Liability is due to be paid this year. (feed)

Non Current Liability is not due to be paid this year. (future mortgages)

Formulas For Financial Records

• Total Assets = current assets+ non current assets

• Total Liabilities = current liabilities + non current liabilities

• Net Worth = total assets – total liabilities

InventoryAn Inventory is an itemized list of things owned by a business with the beginning value and depreciated value

Non-Depreciable Inventory are items that will be used up or sold within one year. (feed)

Depreciable Inventory items that have a useful life more than one year. Loses value because of age (car)