acc wk 3 check - machinery, or equipment. These items can...

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A balance sheet shows a company where they stand financial at a certain point in time. This document consists of the following items: current assets, long-term investments, property, plant, and equipment, and intangible assets. All of these items play a huge role in the financial concerns that a company may have. The first item is current assets which are turned into cash and is supposed to be used within a year of that change. This will show what is in the businesses’ bank accounts. Second item is long-term investments; these are investments in stocks or bonds that the business has for years and land or buildings the business does not use. The business will think of these long-term investments as a liability. The next item is property, plant, and equipment. These are used for running the business. Depending on what the business does this could be land, buildings,
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Unformatted text preview: machinery, or equipment. These items can all lose value and eventually the business money. However, if the business produces a more commonly used item like a television that this could be valuable and make the business more money. The fourth and final item is intangible assets which is something you cant personally put your hands on. These are things like a copyright, trademark, or patent. These assets wont ever truly lose value, they can be taken over but not lose the value. Intangible assets can be defined as a non-monetary asset on the balance sheet. All of these items are important for a business to see on a balance sheet because it will give them and idea on what the need to improve or what is working for the business....
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This note was uploaded on 11/06/2011 for the course ACCT 231 taught by Professor Shan during the Spring '10 term at Allen University.

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