+

Finances

+Terminology Total assets

Current asset

Non-current asset

Total liability

Current liability

Non-current liability

Net worth

Equity

Debt-to-Equity Ratio

Value

Inventory

Non depreciable

Depreciable

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+Current Assets

Current assets: items that can quickly be converted to cash or that will be sold within 12 months

Examples:

Cash

Checking & savings accounts

Stocks

Bonds & cash value of life insurance

Money others owe you

Current non-depreciable inventory

+Non-Current Assets

Non-current assets: items that have a useful life of more than one year and are used in the business

Examples:

Non-current, non-depreciable inventory

Land

+Total Assets=

Current assets + non-current assets

+Current Liability

Current liability: accounts and notes payable, this year’s part of non-current liabilities

Examples:

Mortgage due this year

Credit card bill

+Non-Current Liability

Non-current liability: debts not due this year

Examples:

Mortgage

+Total Liabilities=

Current liabilities + non-current liabilities

+Net Worth (equity)=

Total assets – total liabilities

+Debt-to-Equity

Ratio=total liabilities/

net worth

+Value: monetary

worth

+Inventory: an itemized list of things owned by a business with the beginning value &

depreciated valueNON

DEPRECIABLE Items that will be used up or

sold within a year

Feed, supplies, etc.

DEPRECIABLE Items that have a useful life

of more than one year and lose value because of age, wear or becoming out of date because of technology advancements