Balance Sheet

Accounts Receivable

Current Asset

• Give someone a good/service and they will pay you back later

Cash

Current Asset

Cash Equivalents

Current Asset

Inventory

Current Asset

• Product waiting to be sold

Prepaid Expense

Current Asset

• Company pays for good/service in advance.. prior to receiving it

Plants, Property, Equipment (PP&E)

Long Term Asset

Goodwill

Long Term Asset

• Repuation

Intangible Asset

Long Term Asset

Short Term Debt

Current Liability

Portion of Long Term Debt

Current Liability

Accounts Payable

Current Liability

• A company recives a good/service but has yet to pay for it (includes an Invoice or note)

Accrued Expense

Current Liability

• A company receives a good/service but has not paid for it ( No invoice ever sent… think salaries)

Deferred Revenue

Current Liability

• Cash is collected for a good/service within 1 year

Deferred Tax Liability

Current Liability

• The taxes you still have to pay since you did not pay the entirety 

Long Term Debt

Long Term Liabilities

Deferred Revenue (LT)

Long Term Liability

• Cash is collected for a good/service more than 1 year in advance

• Think Spotify 3 Year Plan

Deferred Taxes (LT)

Taxes a company expects to pay more than 1 year from now

Common Stock

• Shareholder Equity

The Par Value (original value) of stock

Additional Paid in Capital

• Shareholder Equity

The extra money investors pay for a share above the Par Value

Treasury Stock

• Shareholder Equity

Cummalative value of the shares repurchased by the company

Retained Earnings

• Shareholder Equity

Cumulative profit earned that is reinvested in the company rather that used to pay dividends

Working Capital

= Current Assets - Current Liabilities

Operating Working Capital 

= Current Assets (excluding cash) - Current Liabilities (excluding debt)