Balance Sheet- Asset

Asset

ASSET can be further divided into 2 parts:

    1. NON-CURRENT ASSET : 

        Asset that can not be turned into money within one year
    2. CURRENT ASSET : 

        Asset that can be turned into money within one year

Component of Non-Current Assets:

    1. PROPERTY, PLANT, AND EQUIPMENT(PPE) : 

        Tangible asset that can be used to generate profit and last more than one years.

        Examples are building, equipment, machinery, furniture and land. 
    2. CONSTRUCTION IN PROGRESS :

        Buildings that are in the process of constructing.

    3. INVESTMENT PROPERTY :

        Property that are used to receive rental income or value appreciation and 

        not used for production or administration purpose.

    4. INTANGIBLE ASSET :

        Asset without physical appearance. Examples are patent, license, trademarks.
    5. GOODWILL :

        When company acquired another firm, the different between buy price and

         the excess value of that firm(asset-liability) is goodwill.
    6. FINANCIAL ASSET :  

        Financial security that will not be sold within one year. Examples are bonds 

        hold for maturity.
    7. DEFERRED TAX ASSET : 

       Tax that had been paid more in the past or tax incentive that can be used  for

       tax reduction in futures.

Components of Current Assets:

    1. INVENTORY :

       Goods that will eventually be sold to customers. For  example: raw materials , 

       work-in-progress and finished goods.
    2. TRADE AND OTHER RECEIVABLES :

        Money owed by customers to company.
    3. PREPAID EXPENSE :

        Expense that had been paid in advance but not been used.
    4. MARKETABLE SECURITY :  

        Financial security that can be changed into cash within one year.

        Examples are stocks, bonds, bank notes, treasury bills.
    5. CASH AND CASH EQUIVALENTS :

        Consists of cash and deposits in banks.