Patents, Trade Mark, License: These are assets have no physical existence but have properties of assets.The assets cash, accounts receivable, notes receivable, prepaid insurance, inventory and supplies are categorized as current assets.Equipment, buildings, land and patents are categorized as non-curr...
for example, want to know before extending credit whether a company is collecting—or getting paid for—its accounts receivable in a timely manner. On-time payment of the company's payables is important as well. Both the current and quick ratios help with the analysis of a...
Example 1: On 12/31/X2 (before the adjusting process), Supplies, an asset, has a balance of $2,500. Employees take a physical account of the supplies on hand. That physical count reveals that $1,200 of supplies remains.Step 1 -- The balance of Supplies before the adjusting entry ...
ImpairmentofNotesReceivables USGAAPrequiresentitiestoassesswhetherfinancialassetsareimpairedandrecognizetheimpairment.Ifanotereceivableisimpaired,thelossismeasuredbythecreditorasthedifferencebetweentheinvestmentintheloan(usuallytheprincipalplusaccruedinterest)andtheexpectedfuturecashflowsdiscountedattheloan’shistoricaleffective...
Accounts payable only refers to short-term debts – not long-term debts. Companies have many different types of short-term debts, including payroll costs (wages or salaries), short-term loans, and income taxes. Notes payableis not the same. Notes payable or promissory notes are debts that ar...
What's a good example of a resume? This is a good example of a resume: This resume example is good because it clearly advertises all the candidate’s qualifications in a concise, clear format. The resume immediately draws in the hiring manager with a convincingresume objectivethat highlights...
Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds, or accounts receivable. Investopedia / Xiaojie Liu Understanding Liquid Assets A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms ...
You must add long-term assets to current assets to get the total assets for this equity formula. Cash, inventories, and accounts receivable comprise current assets. The value of capital assets and property, including patents, structures, machinery, and notes receivable, are considered long-term as...
000 which caused the checking account balance to increase. We assume that Lee Corp had not yet recorded the collection of the note in its general ledger accounts. Therefore, Lee Corp must increase its Cash account balance and decrease the balance in its asset accountNotes Receivable. This is ...
Inspect cash on hand, notes receivable and payable, negotiable securities, and canceled checks to confirm records are accurate. Examine records and interview workers to ensure recording of transactions and compliance with laws and regulations. Prepare, examine, or analyze accounting records, financial st...