Unformatted text preview: $3,000 Loan from a friend $250 Total Current Liabilities $3,250 Obligations due within the next year Long Term Liabilities Student Loan $5,000 Total Long Term Liabilities $5,000 All Other Obligations TOTAL LIABILITIES $8,250 Everything I owe NET WORTH (Owner's Equity) $4,850 Everything I own minus all that I owe TOTAL LIABILITIES + NET WORTH $13,100 The "Accounting Equation" Current Assets are assets that can be readily converted to cash within 1 year from now. Current Liabilities are obligations due within the next 12 months. Long Term assets are all other assets. Long Term Liabilities are obligations due more than 1 year from now. NOTE: TOTAL ASSETS = TOTAL LIABILITIES + NET WORTH (Owners' Equity)...
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- Spring '09
- Balance Sheet, Generally Accepted Accounting Principles