ACCT 2000 Chapter : Additional ACCT Notes Ch 2
Additional ACCT notes Ch. 2
(Balance Sheet)
Long Term Investments, Property plant and equipment, intangible assets, and other are all long
term or non-current
Accounts Receivable-amounts due from customers
Inventory- Items you have for sale
Supplies- Items used in business (i.e. office supplies)
Prepaid Insurance- Insurance paid in advance *paid in advance means it’s an asset
Stock Investments- stock in another company
Real Estate not used for the company goes under investments.
List current Assets in order of liquidity.
Liabilities: Notes Payable always goes first and Accounts payable goes second after that list in
order of magnitude
Notes payable/interest payable is owed to creditor
Accounts payable is owed to suppliers
Stock holder’s equity: common stock is always first and retained earnings is always second
Plant Assets, Fixed Assets and PPE are all the same thing, Items being used to make money i.e. a
lawn mower
Anything “payable” is owed to others and falls under liabilities
All ratios are the higher the better EXECPT for the debt to total assets ratio.
Debt to total assets ratio the lower the better
Document Summary
Long term investments, property plant and equipment, intangible assets, and other are all long term or non-current. Supplies- items used in business (i. e. office supplies) Prepaid insurance- insurance paid in advance *paid in advance means it"s an asset. Real estate not used for the company goes under investments. Liabilities: notes payable always goes first and accounts payable goes second after that list in order of magnitude. Stock holder"s equity: common stock is always first and retained earnings is always second. Plant assets, fixed assets and ppe are all the same thing, items being used to make money i. e. a lawn mower. Anything payable is owed to others and falls under liabilities. All ratios are the higher the better execpt for the debt to total assets ratio.
