Accounts

In what order are current assets listed on the balance sheet?

In order of liquidity is listed from most liquid to least liquid.

What is the order of liquidity for current assets?

Cash → Short-term investments → Accounts receivable → Notes receivable → Inventory → Supplies → Prepaid expenses.

What comes after Current Assets on the balance sheet?

Long-term investments.

What is the order for Long-term Investments?

Investments in stocks, bonds, and real estate expected to be held longer than one year.

What comes after Long-term Investments on the balance sheet?

Property, Plant, and Equipment (PPE).

What is included in Property, Plant, and Equipment (PPE)?

Land, Buildings, Equipment, and Accumulated Depreciation.

What comes after PPE on the balance sheet?

Intangible assets (like patents, copyrights, goodwill).

How are liabilities divided on the balance sheet?

Into Current Liabilities and Long-term Liabilities.

What are Current Liabilities?

Obligations due within one year (or one operating cycle, whichever is longer).

Give examples of Current Liabilities.

Accounts payable, Notes payable (short-term), Unearned revenue, Salaries and wages payable, Interest payable.

What are Long-term Liabilities?

Obligations due after one year.

Give examples of Long-term Liabilities.

Mortgage payable, Bonds payable, Long-term notes payable.

What is included in Short-term Investments?

Short-term investments include debt investments, equity (stock) investments, and money market funds that are expected to be sold or within one year.