Although the cost of land may have risen, its recorded value remain unchanged at its original cost because this amount is recorded and verifiable. owner(s) Inventories refers to goods that are held for sale to the customers in the normal course of business: prepayments expenses paid in advance, such as rent. Intangible assets: have no physical substance but have a long life. Liabilities that have maturities beyond a year or the accounting period. 2 different types of events that are called business transactions: external events: exchange of assets and liabilities, services and products with a third party. Example: purchase of a machine from a supplier. Internal events: include events that are not exchanges between business but that affect the entity regardless. 2: the journal entry is a summary of a transaction and it effects on various accounts. A journal entry that affects more than 2 accounts is called a compound entry: t-accounts journal ledger.