One , The company will have three tables :
Balance sheet
Income statement
Cash statement

Two , In the eyes of accountants, companies do three things :
Production and operation activities
Financing activities
Investment activities

Describe an economic activity clearly , Balance sheet is needed first , To find out what the initial principal invested in the company has become in the process , What is the value ?

The balance sheet includes : assets Asset, liabilities Liabilities, Shareholders' equity Shareholder's equity
assets Asset:
current assets
1. Monetary capital cash
2. Receivables  Accounts receivable
3. Other receivables ( Travel reserve , Friend loan , Loans from related parties ...)other receivable
4. Prepayment prepaid accounts
5. stock ( raw material , Reproductions )Inventory
6. Prepaid expenses Deferred expense( Long term unamortized expenses, etc ).
The above are current assets

Noncurrent assets Non current assets
1. intangible assets Intangible assets
( patent right , Know how , copyright , Trademark right , goodwill , Mining rights, etc , China's unique land use right )
2. fixed assets ( Equipment building, automobile computer, etc )other
One cycle into cash is current assets , Fixed assets are the items that can only become cash many times and have a high value .
Depreciation describes the loss of fixed assets . In some countries, land is a fixed asset , But no depreciation .
3. long-term investment ( Investment in subsidiaries , Participating in other companies , Purchase of bonds )
All the above items are arranged according to the speed of turning into cash .

Understanding of assets in the balance sheet :
Assets are assets owned by the company , Property includes money and things .
Money is in your own hands and in others' hands , And investment , What you have is money , Others have receivables , Other receivables , And prepayment for early delivery .
Things include : Office supplies and necessary consumables , Raw materials for production , And fixed assets such as plant, office building, etc .

Difference between assets and expenses :
Spend a lot of money for something useful in the future , This is the asset Asset;
If you use up nothing , It's the cost Expense.

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