Helpful_Hints_BS_Income_statement - HelpfulHints...

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Helpful Hints Balance Sheet: Assets :  Valuable items used by the company which may be of short term and  long term value. Long term assets are something of value that the company uses  for generally more than one year, and not “consumed” fairly quickly.   Short term assets might include things such as cash, receivables, and inventory.  The key thing to recall is these items have not been “sold” to customers or others  *yet* (they may be sold later, but not yet).   Think of it like you buying a car- it is an asset, but someday you may sell it or  trade it in. The money you receive from your job and what’s in your checking  account is an asset, but it obviously is varying in amount.  Maybe we sold something on credit to a customer- that is a receivable.   Inventory is materials or goods we expect to sell shortly to someone- think of  Foley’s merchandise when you go into their store- that is inventory to them. They  had to expend their own resources to acquire the inventory before we, the  customer, buy the merchandise from them. Equipment can be computers, display bins, etc. 
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This note was uploaded on 06/06/2011 for the course ACC 231 taught by Professor - during the Fall '10 term at Sam Houston State University.

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Helpful_Hints_BS_Income_statement - HelpfulHints...

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