Intermediate Accounting For Dummies

Part III

Homing in on Current and Noncurrent Assets

In this part . . .

You explore the three types of current assets: cash, receivables, and inventory. Cash is always a fun topic. What isn’t there to like about cash?

In addition to what you probably consider to be “regular” types of cash accounts, like checking accounts, Chapter 9 discusses cash equivalents, which are current assets that lack the liquidity of cash. This chapter also discusses accounts and notes receivable. Accounts receivable generally originate with customer transactions. You find out about accounting for the different types of debt hanging out on the balance sheet as notes receivable.

Chapter 10 discusses inventory. You find out about the different types of inventory and the costs associated with them. Inventory cost flow assumptions, which is how the cost of inventory moves from the balance sheet to the income statement, is also explored. Finally, I give you the skinny on how to estimate inventory, handle retail inventory transactions, and dispose of obsolete inventory.

You also delve into two types of noncurrent assets: tangible and intangible. Tangible assets include property, plant, and equipment, which have a physical presence. Intangible assets don’t have a physical existence and include patents, copyrights, and goodwill.

I discuss issues related to tangible assets in Chapters 11 and 12. Chapter 11 ...