Components of Balance Sheet.pptx

Entrepreneurship. Components of Balanace SHeet

1. ENTREPRENEURSHIP

2. POTNEMOCN COMPONENT

3. BLANCEA HESTE BALANCE SHEET

4. BNESIUSS HORTW BUSINESS WORTH

5. PUTINOTAMOC COMPUTATION

6. TESSEAS ASSETS

7. WHAT ARE THE COMPONENT’S OF BALANCE SHEET’S?

8. WE HAVE 3 COMPONENT’S OF BALANCE SHEET

9. ASSET’S > An asset is a resource with  economic value  that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. >Assets are reported on a company's balance sheet. They're classified as current, fixed, financial, and intangible or intangible. >An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales. > Assets represent all things of value that belong to the company.

10. THERE ARE 6 TYPE’S OF ASSETS

11. Current Assets In accounting, some assets are referred to as current.  Current assets  are short-term economic resources that are expected to be converted into cash or consumed within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, and various prepaid expenses . >Cash >Supplies

12. Non-current assets characterized as assets that will generate economic value for one or more fiscal periods into the future. For example, consider a business that owns manufacturing equipment; an effective management team will use that equipment to manufacture products for as long as it is safe and practical to do so. The economic benefit materializes in the future when those products are sold to generate revenue.  Other examples of non-current assets include tangible assets like land, buildings, and vehicles, as well as intangible assets like intellectual property and goodwill.  Non-current assets are sometimes referred to as LONG TERM and FIXED ASSET IS UNDER NON CURRENT

13. EXAMPLE; > Land >Property , plant, and equipment (PP&E) >Trademarks

14. . Tangible assets Tangible assets are ones you can touch, feel or see. Meaning they’re any physical or measurable items a company uses for its operations. These assets often provide a way for a business to operate. Some common examples of these include: >Machinery >Buildings >Cash >Land

15. Intangible or FINANCIAL ASSETS Intangible assets are economic resources that have no physical presence >Patents >Trademarks >Copyrights >Goodwill .

16. . Operating assets These assets are any ones that are vital for a company’s daily operations. Operating assets allow companies to perform their more basic business activities, which helps them generate revenue. Examples of these assets are: > Cash >Buildings >Goodwill >Machinery

17. . Non-operating assets Non-operating assets are ones that businesses can use to generate revenue, even though they aren’t required for their daily operations. Some common examples of these assets include: > Vacant land > Interest income from fixed deposits > Marketable securities > Short-term investments

18. 2. LIABILITIES – WHAT THE COMPANY OWE’S? Anything for which a company is legally bound or obligated, as to make good any loss or damage that occurs in a transaction are one of two general categories claims held against a company. Liabilities are the non-ownership claims against the firm. It is also possible to define liabilities as obligations that the entity must satisfy through the sacrifice of some future benefit.

19. There are 2 types of liabilities

20. > Current liabilities These include debts or obligations that have to fulfilled within a year. Current are also called short-term liabilities, interest payable, and short-term loans.

21. > NON-CURRENT LIABILITIES T hese are debts or obligations for which the due date is more than a year. Non-current liabilities, also called long term liabilities, include bonds payable, long term notes payable, and deferred tax liabilities.

22. 3. shareholder’s equity Is the amount that the owners of a c ompany have invested in their business. This includes the money they’re directly invested and the accumulation of income the company has earned and that has been reinvested since inception’ and also known as stockholders’ equity or owner’s equity.

23. Assets = Liabilities + Equity

24. THANK YOU!