Assets - Cash Cash are currency and coins, balances in...

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Cash Cash are currency and coins, balances in checking accounts, and items acceptable for deposits in these accounts, such as checks and money orders received from customers. Accounts receivable This is the receivables resulting from the sale of goods or services.This is treated as a current asset on the balance sheet. Prepaid expenses Prepaid expenses result from businesses making payments for goods and services to be received in the near future. Property, plant and equipment Property, plant and equipment are tangible, long-lived assets used in the operations of the business. Land, natural resources, buildings, furniture, equipment, and machinery are included in this category. They are listed under the asset portion of the balance sheet. One major component that comes into play with property, plant, and equipment is depreciation. Mostly for equipment and machinery things are depreciated on either a straight line, declining, sum of the years digits, or units of production balance. For natural resources they use a method similar, but it is called depletion. Accounting for these things is pretty simple. The item, or land, is listed on the books at its value and every year the calculated depreciation is taken off and that determines its book value. Many times there is an estimated life and salvage value if the company thinks it can resell the item. If not, it is disposed of and the gain or loss of the sale is recorded on the books as well as removal of the item from the books. Figuring the cost of an item takes into consideration more than just the purchase price. Added to that would be any taxes paid, less any discounts received, cost of transportation that a company pays to bring the item to where it needs to go, and the cost of getting it ready for use. The cost of land would include any attorney fees, real estate fees, title fees, back taxes that need to be paid, and the cost of preparation for the lands intended use. Buildings also have additional costs such as legal fees and remodeling fees to prepare it for use. The same goes for natural resources. Basically any costs that are necessary to get an item or land ready to use for business is included
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Assets - Cash Cash are currency and coins, balances in...

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