FINANCIAL
STATEMENT ANALYSIS 1-3
Short-term Assets
Current
Some asset
accounts represent the current (short-term) assets of XYZ
Corporation. They include:
·
C
ASH
amount of cash held by the company in liquid bank
accounts
·
M
ARKETABLE
S
ECURITIES
value of short-term investments held by
the company
·
A
CCOUNTS
R
ECEIVABLE
amount owed to the company by its
customers who have purchased their products or services on
credit terms
·
I
NVENTORIES
amount of money the company has invested in
raw materials, work-in-progress, and finished goods available for
sale
·
P
REPAID
E
XPENSES
amount of expenses paid by the company
before the expense is incurred. One example is rent on an office
building paid at the beginning of the year for the entire year.
·
O
THER
C
URRENT
A
SSETS
any other item related to production
that does not fit into the above classifications
Long-term Assets
Investments for
operations
XYZ Corporation also has long-term investments for the operation
of its business. These asset accounts include:
·
G
ROSS
F
IXED
A
SSETS
amount that the company paid for its
property, manufacturing plants, and equipment when it acquired
those assets at some time in the past
·
D
EPRECIATION
total amount of money that the company has
charged as an expense for using the plants and equipment. Since
this account is a deduction from an asset account, it is referred to
as a contra-asset account.