Ch. 3 Assets and Liabilities

It is impossible to cover every accounting topic in a compressed accounting course.  In this chapter, we will cover random items that you might see as a manager of a business.  Make sure you understand these concepts as you will see them again in the financial and budget project.

Topics covered:

• Inventory is an important aspect of the business world.  Understanding how inventory is purchased, sold, and returned will allow you to recognize common errors on financial statements.
• Accounts Receivable is often not collected because customers have financial issues.  Businesses often guess what will not be collected to allow them to predict expenses.
• Long-term and Intangible Assets are use to make your business better but need to be depreciated to move the expense from the Balance Sheet to the Income Statement.
• Notes Payable and Interest will often happen in a business as a way to have cash to operate.