The Accounting Equation – A Closer Look at Fixed Assets Fixed assets take more work than other assets, from both a real-life maintenance perspective and from the accounting viewpoint. The more substantial fixed assets, from vehicles to factories, can require a lot of planning, drawn-out purchase arrangements, and the burden of long-term liabilities to go … Read more
The Accounting Equation – Breaking Out Asset Categories The accounting way to separate assets into categories uses liquidity as the measure. Anything that is expected to be converted to cash within one year of your balance sheet date is considered a current asset; all others are plunked down into one of the long-term categories. Long-term … Read more
The Accounting Equation – Every Business Has Assets No matter how small your business, no matter what industry your company is part of, your company has assets. From a computer used to prepare customer invoices to a 20,000-square-foot processing plant, every single thing your company owns is an asset, as long as you can assign … Read more
