@brianferoldi: 10 Confusing Balance Sheet Terms (and Simple Ways to Tell Them Apart) 👉 FOLLOW @brianferoldi for more content like this. Like this visual? Grab a FREE copy of my accounting ebook (link in bio). Asset vs. Equity Assets are what the company owns and uses to generate income. Equity is what’s left for the owners after debts are paid. Easy reminder: Assets = Owned; Equity = New Worth. Current Asset vs. Fixed Asset Current Assets are short-term resources (like cash, inventory) used within a year. Fixed Assets (like buildings, machinery) are long-term and not easily converted to cash. Easy reminder: Current = <1 year; Fixed = +1 year. Accounts Receivable vs. Accounts Payable Accounts Receivable: Money owed to you by customers. Accounts Payable: Money you owe suppliers. Easy reminder: Receivable = Receive; Payable = Pay. Depreciation vs. Amortization Depreciation applies to tangible assets (like equipment) losing value over time. Amortization applies to intangible assets (like patents). Easy reminder: D for Desks (physical); A for Abstractions (intangible). Market Value vs. Book Value Market Value is what someone’s willing to pay today Book Value is what the balance sheet says the asset is worth. Easy reminder: Market = Real price; Book = Paper price. #accounting #accountingstudent #finance #finance101 #investing #investingforbeginners

Investor | Financial Educator

Open In TikTok:

Region: US

Sunday 15 December 2024 14:04:05 GMT