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Unformatted text preview: Financial Accounting Chapter 4 Notes Two common classes of assets are current assets and property, plant and equipment. Current assets are cash and other assets that are expected to be converted to cash or sold or used up usually one year or less through normal operations of business. (Notes receivables, account receivable, supplies, and other prepaid expenses) Notes receivable are amounts that customers owe. Property, Plant, and Equipment are equipment, machinery, buildings, and land. Liabilities are the amounts the business owes to creditors. Current liabilities are liabilities that will be due within a short time usually one year or less and that are paid out of current assets. Long-term liabilities are liabilities that will not be due for a long time usually more than one year. (Mortgage note, mortgage payable) Real accounts are balances of the accounts reported on a balance sheet that are carried from year to year. are balances of the accounts reported on a balance sheet that are carried from year to year....
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- Spring '10