Assets and Liabilities
So, what exactly are a company’s assets and liabilities, and where can you find that data?
You can see a breakdown of your assets and liabilities on your company’s balance sheet.
When we speak of ‘total assets’, we include assets you can convert into cash easily within one year, things like cash, accounts receivable, and inventory. We name these your current assets.
Also within ‘total assets’ are investments, property, equipment, and other intangibles that you couldn't convert into cash so quickly. We call these longer-term assets non-current assets.
We split total liabilities into two categories, too.
There are the payments you need to make within one year like accounts payable and taxes payable. We call these your current liabilities.
On the other hand, there are obligations that are due for repayment over longer periods like bonds, pension obligations, and leases. We call these long-term liabilities.
A well-organised balance sheet will let you see your current assets, non-current assets, current liabilities, and long-term liabilities all in one place.
