1. It’s all about the Benjamins baby.
Finances, 2.02
It’s all about the Benjamins baby.

2. Asset Something tangible that you own
Ass (both your booty and the kind that is livestock)

3. Current Asset
An asset that is has a shelf life of less than one year or is quickly converted to cash
Greenhouse supplies
Milk
Cash
Checks
Life insurance

4. Non Current Asset
An asset that has a shelf life of more than one year or takes time to turn into cash
This usually loses value after a year (depreciates)
Land
Mobile Home
Tractor
Goat

5. Liability Debt, something you owe Cell phone bills Drug dealers
Bullies

6. Current Liability You owe the debt this financial year
January through December’s cell phone bill
This year’s mortgage
This year’s bills

7. Non Current Liability Debts that you owe after this year
Mortgage (30 year mortgage, you got to pay that forever)
Car loan
Engagement ring

8. Net Worth Total assets minus total liabilities
How much you are really worth
Determines if you can get a loan, buy a car, buy a house, how much financial aid you get

9. Equity Same thing as net worth
Fancy way of saying how much “real” cheddar you got!

10. Debt to Equity Ratio How much do you owe versus how much do you have
This is really what loan officers will look at
Also, if you are trying to rent an apartment they will look at how much money you make versus how much you spend

11. Inventory What you got! A list of all of the items that you own
Shops will close for inventory
Stores will have “inventory reduction” sales to get rid of some of their stock

12. Depreciation Losing value
Anything with a shelf life of more than one year ( anon current asset) will depreciate
The moment you drive a new car off of the lot, it depreciates
Once something becomes an antique or something like land will not depreciate

13. Let’s do some math, dawg.
If I have $20 in cash and a $50 check from grandma, how much do I have in non current assets?
If I have $50 in my savings bank, a $100 life insurance policy, and I owe $50 to the mob, what is my net worth?