What goes on a balance sheet

Short term debt

any debt incurred by a company that is due within one year Current liability

Current assets

assets that the company will use within one year

Long term assets

assets that will last longer than a year Ex: Property, plant and equipment, goodwill

Current liabilities

company must pay liability within one year Ex: accounts payable, accrued liabilities, dividends payable, salaries payable

Property, plant, and equipment

company's land, buildings, equipment, delivery trucks, etc., which are depreciating assets and fixed assets long term asset

Liabilities

company's obligations -- either money that must be paid or services that must be performed Ex: accounts payable, salaries payable, accrued liabilities

inventory

cost of products that the company is holding to sell to customers current asset

cash

current asset, includes credit cards

additional paid-in capital

excess paid by an investor over and above the par-value price of a stock issue

accrued expense

expense recognized in the books before it is paid for current liability

long term debt

financial obligation payable in over a year ex: loans, bonds long term liability

prepaid expenses

future expenses that have been paid in advance, ex: insurance, tuition, current asset

Shareholder's equity

investment by shareholders is captured in the common stock and additional paid-in capital; total assets - total liabilities owner's equity

fixed assets

long term tangible assets that help produce revenue; company owns and will use these resources for over a year

balance sheet key words

payable, accrued, receivable, earnings, prepaid

Assets

something your company owns that can provide future economic benefits Ex: Cash, inventory, accounts receivable, land, buildings, equipment

Retained earnings

sum of company's profits since the company began - dividends paid out owner's equity

balance sheet

summarizes a company's assets, liabilities and shareholders' equity at a specific date

balance sheet equation

Assets = liabilities + owners' equity

Long term liabilities

Long term liabilities: obligations with a repayment date longer than a year Ex: loans

Accounts receivable

amounts due to the company from its customers current asset

accrued liability

amounts that the company owes to companies and its individuals that have provided services used in operations Current liability

accounts payable

amounts that the company owes to its primary suppliers current liability