Balance sheet is also called balance sheet.
Balance sheet structure
Assets: resources owned by the company that are expected to bring benefits to the company in the future. The resources mentioned here are valuable and quantifiable from the financial point of view. There are also some resources, such as the company's brand, employees and government relations, which are important resources of the company, but they will not be listed in the balance sheet when making financial statements. Different industries and different types of companies have different assets. For example, in industrial manufacturing and railway transportation, plant and machinery and equipment are very important assets, but in service industries such as finance, securities and software, the proportion of such fixed assets is very small. Assets are divided into current assets and non-current assets according to their liquidity: current assets refer to assets that can be converted into cash within a certain period of time (usually one year). Non-current assets refer to assets that cannot be realized or consumed within a certain period of time (usually one year). The sum of current assets and non-current assets is the total capital.
floating assets
Current assets refer to assets that can be converted into cash within a certain period of time (usually one year).
Cash: cash and bank deposits and other monetary funds.
Short-term investment: refers to the purchase of marketable securities that can be realized at any time and can be held for less than one year (including one year), and other investments that can be realized in a short period of time, such as various bonds, funds, government and municipal bonds, stocks and other financial assets.
Accounts receivable: accounts receivable, bills receivable, interest receivable, debts receivable, etc. It is owed by others to the company and can be recovered in a short time (usually within one year).
Inventory: including finished products (products that can be sold immediately); Semi-finished products (materials that can be used for processing) and raw materials and reserves (raw materials that can be used for production and processing)
Other current assets: refer to current assets other than monetary funds, short-term investments, notes receivable, accounts receivable, other receivables and inventories.
non-liquid asset
Non-current assets refer to assets that cannot be realized or consumed within a certain period of time (usually one year).
Property/plant/machinery and equipment ("PP & amp； E ") Such assets can also be called tangible fixed assets.
Depreciation: Depreciation is a very important concept in the balance sheet, which reflects the decrease in the value of tangible fixed assets within the expected life. For example, the value of workshops, machinery and equipment, automobiles and other means of transportation will decrease over time, so it is necessary to use appropriate depreciation methods to evaluate the amount of asset impairment. Different companies have different ways to accrue depreciation, and they are easily manipulated. Pay attention to this.
Long-term investment: investment that is not ready to be converted into cash within one year, such as equity investment.
Goodwill (net worth): Goodwill is usually generated in the process of enterprise merger and acquisition. It is generated by the difference between the price paid for the acquisition of assets and the fair value of assets (i.e. the acquisition premium), that is, the expected future profits of the acquired party are included in the value of current assets. It is worth noting that for goodwill, the company will conduct goodwill impairment treatment in the future.
Intangible assets (net value): Intangible assets include patents, non-patented technologies, trademarks, copyrights, land use rights, franchises, etc. It should be noted that it is very difficult to accurately price and evaluate intangible assets. If it's on the balance sheet, it's best to find out its ins and outs.
Other long-term assets: mainly including long-term prepaid expenses, as well as special reserve materials, frozen deposits in banks, frozen materials, property in long-term litigation, etc.