ASSETS: Things of value that we own, assets are commonly divided into two sections on the
balance sheet 1) current assets and 2) property, plant and equipment.
Current assets are assets that are expected to be converted to cash or sold or used up usually
Fixed assets are long-term or relatively permanent assets such as equipment,
machinery, buildings, and land. (Property, Plant and Equipment)
The costs of acquiring fixed assets include all amounts spent to get the asset in place
and ready to use. (include
Cost of goods sold.
To break out fixed and variable you must multiply the expenses times
Profit the difference between the amounts received from customers for goods or services
provided and the amounts paid for the inputs used to provide the goods or services.
Service Businesses provide services rather than products.
Notes Receivable amounts that customers owe for which a formal, written
instrument of credit has been issued.
Other receivables interest receivable, taxes receivable, etc.
Sometimes customers do not pay their accounts sometimes they will be