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Assets and Contra-Asset
Accounts |
Current Assets |
Current Assets include assets that are
expected to be converted into cash within a year from the balance sheet date.
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 Cash
Bank deposits
Accounts receivable (due within
a year from the balance sheet date)
Notes receivable (due within a
year from the balance sheet date)
Marketable securities
Short-term loans
Prepaid expenses
Other current assets |
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Inventories |
Inventories include merchandise or goods that
are ready to be sold, and other assets that are in the process of producing goods.
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Merchandise
Raw materials
Work-in-process (WIP)
Finished goods |
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Property,
Plant, and Equipment (PP&E)
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PP&E include tangible fixed assets that
are used for the primary business operations.
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Land
Buildings
Machinery
Equipment
Vehicles
Leasehold improvements |
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Accumulated Depreciation
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Accumulated depreciation is a
contra-asset account which is subtracted from asset accounts.
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Land does not have accumulated depreciation, because land account is not
depreciated.
Accumulated depreciation,
buildings
Accumulated depreciation,
machinery
Accumulated depreciation,
equipment
Accumulated depreciation,
vehicles |
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Intangible
Assets
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Intangible assets include assets that do not
have physical substance, but provide future economic benefits.
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Trademark
Copyright
Patent
Goodwill |
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The amortization of intangible assets is
--> directly subtracted from the balance
of related intangible assets.
--> accounts such as "accumulated
amortization" are not used for intangible assets. |
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Other Assets
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Other assets include noncurrent assets that
are not classified as one of the above accounts.
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Long-term notes receivable (due after a year from the balance sheet
date)
Long-term loans related
companies |
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