What is a current asset?
Something that can be turned into cash 1 year from the statement.
In what order are current assets usually listed?
In order of liquidity
Give three examples, in order, of current assets.
Cash, trading investments, accounts receivable
What is an account receivable?
Money a client owes you.
What is a non-current asset?
All assets that are not current.
Give some examples of Non-current assets.
Long-term investments, Property, plant and equipment, Intangible assets and goodwill.
What are Long-Term investments?
Multi-year investments in loans, notes, bond, mortgages. Normally these assets are not intended to be sold.
What is Property, Plant, and equipment?
Tangible assets with long lives.
Give some examples of Property, land, and equipment.
Land, Building, Equipment, Furniture, computers, vehicles.
How is Property, Plant, and Equipment usually listed?
In order of permanency, so how long it will be around for. ie. Land, Equipment, computers.
What is depreciation?
Allocation of cost of property, plant, and equipment over their estimated useful lives. (Total cost/useful life time)
What term(s) does IFRS recommend for tangible, and intangible assets?
Tangible = Depreciation
Intangible = Amortization
What term(s) does ASPE recommend for tangible, and intangible assets?
They use amortization for both.
Is land depreciated?
NO (Indefinite life)
What is Accumulated depreciation?
Total amount of depreciation expense recorded to date.
What kind of account is accumulated depreiciation?
Contra asset account.
What is the difference between the cost of the asset and the accumulated appreciation called? (cost of asset - accumulated cost)
Carrying amount
What are intangible assets?
Assets that you can’t touch
What are some examples of Intangible assets?
Patents, copyrights, trademarks, licenses.
What is Goodwill?
A value that cannot be seen but also not sold.
Give some examples of Goodwill.
Brand Loyalty, Skilled workforce, Relationships.
What are current liabilities?
Things that need to be payed in the next year.
What are some examples of current liabilities?
Band debts, accounts payable, deferred revenue, current portion of long term debts.
What are non-current debts?
Things that can be payed after one year.
