The Balance Sheet

CURRENT ASSETS - MATCHING Match the item to the description. current assets can be converted into cash in less than a year marketable securities stocks & investments accounts receivables monies due within 30-60 days notes receivables monies due longer than 60 days out prepaid expenses assets that have been paid for in advance but have not yet been used ASSETS - SORTING Fixed Assets land buildings equipment assets held or used for a period longer than one year Intangible Assets patents copyrights trademarks assets that do not exist physically but have value LIABILITIES - MATCHING Match the item to the description. current liabilities debts that will be repaid in one year or less notes payable obligations that have been secured with a promissory note, usually due more than one year out long-term liabilities debts that need not be repaid for at least one year (mortgages) OWNERS' OR STOCKHOLDERS' EQUITY OWNERS' OR STOCKHOLDERS' EQUITY is the total value of stock and retained earnings and is the difference between liabilities and assets.RETAINED EARNINGS are a portion of profits not distributed to stockholders Explain depreciation as it relates to fixed assets.