Business and Personal Finance: Breaking Out Asset Categories

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

Business and Personal Finance: Every Business Has Assets

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