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Accounting All-in-One For Dummies, with Online Practice, 2nd Edition
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Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

by Joseph Kraynak
April 2018
Beginner content levelBeginner
768 pages
20h 9m
English
For Dummies
Content preview from Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 3

Assessing the Balance Sheet’s Asset Section

IN THIS CHAPTER

check Sticking with an asset’s historic cost

check Listing common current assets

check Distinguishing between tangible and intangible assets

check Preparing the asset section of a balance sheet

Abalance sheet reports a company’s assets, liabilities (claims against those assets), and equity (the amount of money left when you sell what you own and pay what you owe). This chapter gets the party started by focusing on assets; Chapter 4 walks you through the liabilities section, and Chapter 5 covers equity.

Assets are resources a company owns and uses to generate revenue. Businesses have many different types of assets, which are categorized as either current or noncurrent. Current assets (such as checking accounts, accounts receivable, and inventory) are liquid, which means they either are cash or can quickly be turned into cash.

Noncurrent assets aren’t liquid; converting them to cash may take time. Converting these assets to cash may result in a loss or a gain on sale. Examples of noncurrent assets include tangible assets (things you can ...

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Publisher Resources

ISBN: 9781119453895Purchase book