( 1 ) Balance Sheet

Prepaid Expenses

A prepaid expense is a type of asset on the Balance Sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the Income Statement. Unlike conventional expenses, the business will receive something of value from the prepaid expense over the course of several accounting periods.

Notes Payable

A promissory note signed by a business and given to a creditor.

Accounts Receivable

Accounts Receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the Balance Sheet as a Current Asset. AR is an amount of money owed by customers for purchases made on credit.

Accounts Payable

Accounts payable is the aggregate amount of one's short-term obligations to pay suppliers for products and services that were purchased on credit. If accounts payable are not paid within the payment terms agreed to with the supplier, the payables are considered to be in default, which may trigger a penalty or interest payment, or the revocation or curtailment of additional credit from the supplier.

Accumulated Depreciation

Accumulated Depreciation is the total amount an asset has been depreciated up until a single point. Each period, the depreciation expense recorded in that period is added to the beginning accumulated depreciation balance. An asset's Carrying Value on the Balance Sheet is the difference between its historical cost and Accumulated Depreciation.

Intangible Assets

An Intangible Asset is an asset that is not physical in nature. Goodwill, brand recognition, and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

Accrued Expenses

An accrued expense is an accounting term that refers to an expense that is recognized on the books before it has been paid; the expense is recorded in the accounting period in which it is incurred. Because accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities; accrued expenses are also known as accrued liabilities.

Cash

Asset

Capital Stock

Capital Stock is the number of common and preferred shares that a company is authorized to issue, according to its corporate charter. The amount received by the corporation when it issued shares of its Capital Stock is reported in the Shareholders' Equity section of the Balance Sheet. Firms can issue more Capital Stock over time or buy back shares that are currently owned by shareholders.

Current Liabilities

Current Liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales. An example of a current liability is money owned to suppliers in the form of accounts payable.

Current Assets

Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, used, or exhausted through standard business operations with one year. Current assets appear on a company's Balance Sheet, one of the required financial statements that must be completed each year.

Shareholders' Equity

For corporations, shareholder equity (SE), also referred to as shareholders' equity and stockholders' equity, is the corporation's owners' residual claim on assets after debts have been paid. Equity is equal to a firm's total assets minus its total liabilities.

Income Tax Payable

Income Tax Payable is a type of account in the current liabilities section of a company's Balance Sheet. It is compiled of taxes due to the government within one year. The calculation of Income Tax Payable is according to the prevailing tax law in the company's home country.

Inventory

Inventory is classified as a current asset on a company's Balance Sheet, and it serves as a buffer between manufacturing and order fulfillment. When an inventory item is sold, its carrying cost transfers to the Cost of Goods Sold (COGS) category on the Income Statement. Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale. Inventory represents one of the most important assets of a business because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders.

Long-term debt

Long-term debt is debt that matures in more than one year. Long-term debt can be viewed from two perspectives: financial statement reporting by the issuer and financial investing. In financial statement reporting, companies must record long-term debt issuance and all of its associated payment obligations on its financial statements.

Other Assets

Other Assets are a grouping of accounts that are listed as a separate line item in the assets section of the Balance Sheet. This line item contains minor assets that do not naturally fit into any of the main assets categories Examples of these are: Advances to employee, Bond issuance costs, Deferred tax assets, Prepaid expenses.

Net PP&E

PP&E net costs

Property, Plants & Equipment (PP&E)

Property, plant, and equipment (PP&E) are long-term assets vital to business operations and not easily converted into cash. Property, plant, and equipment are tangible assets, meaning they are physical in nature or can be touched. The total value of PP&E can range from very low to extremely high compared to total assets. It is important to not when calculating equity.

Retained Earnings

Retained Earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders. A business generates earnings that can be positive (profits) or negative (losses).

Total Liabilities

Total liabilities are the combined debts and obligations that an individual or company owes to outside parties. All assets of a company are either owned by the entity and classified as equity or are subject to future obligations and recorded as a liability. On the Balance Sheet, total liabilities plus equity must equal total assets.

Total Liabilities & Equity

Total liabilities are the combined debts and obligations that an individual or company owes to outside parties. All assets of a company are either owned by the entity and classified as equity or are subject to future obligations and recorded as a liability. On the Balance Sheet, total liabilities plus equity must equal total assets.

Treasury Stock

Treasury Stock, refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result is that the total number of outstanding shares on the open market decreases. These shares are issued but not longer outstanding and are not included in the distribution of dividends or the calculation or earnings per share (EPS).

Total Equity

total assets - total liabilities