One , The company will have three tables ：
Two , In the eyes of accountants, companies do three things ：
Production and operation 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
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.