1. BALANCE SHEET SHOWS ASSETS LIABILITIES AND OWNERS EQUITY AS OF A CERTAIN DATE SO THERE IS AN ASSET SECTION ON THE BALANCE SHEET, A LIABILITY SECTION AND AN OWNERS EQUITY

2. FIVE TYPES OF CURRENT ASSETS CASH MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES (SUPPLIES, ETC.)

3. ASSETS ANYTHING THE COMPANY OWNS THEY MAY BE 1. CURRENT 2. LONG TERM 3. INTANGIBLE 4. INVESTMENT IN SUBSIDIARY 5. ITEMS HELD FOR LONG TERM INVESTMENT

4. CURRENT ASSETS PRESENTED ON THE BALANCE SHEET UNDER CURRENT ASSET CURRENTS ASSETS ARE EXPECTED TO BE CONSUMED WITHIN ONE YEAR

5. CASH MEDIUM OF EXCHANGE

6. MARKETABLE SECURITIES STOCKS AND BONDS OF OTHER COMPANIES OWNED BY THIS COMPANY

7. ACCOUNTS RECEIVABLE AMOUNTS TO US (THIS COMPANY) DUE TO RENDERING GOODS OR SERVICE ON CREDIT

8. INVENTORY ITEMS HELD FOR SALE IN THE ORDINARY COURSE OF BUSINESS. (HAVE YOU BEEN TO WALMART)

9. PREPAID EXPENSE SUPPLIES AND OTHER EXPENSES PAID FOR BUT NOT YET CONSUMED

10. LONG TERM ASSETS USUALLY CALLED PROPERTY PLANT AND EQUIPMENT. THEY ARE TANGIBLE ITEMS EXPECTED TO LAST MORE THAN ONE YEAR. THE COMMON ACCOUNTS ARE: EQUIPMENT BUILDING LAND

11. LIABILITIES ANYTHING THE COMPANY OWES LIABILITIES ARE EITHER: 1. SHORT TERM, EXPECTED TO PAID IN ONE YEAR 2. LONG TERM, EXPECTED TO BE PAID IN MORE THAN ONE YEAR FROM NOW

12. OWNERS EQUITY THE MAJOR ACCOUNTS ARE: COMMON STOCK CONTRIBUTED CAPITAL RETAINED EARNINGS

13. BALANCE SHEET XYZ COMPANY AS OF DEC. 31, 2010 ASSETS: LIABILITES CURRENT ASSETS CURRENT LIABILITES CASH XXX ACCOUNTS PAYABLE XXX MARKET SEC XXX NOTES PAYABLE XXX ACC REC XXX INTEREST PAYABLE XXX INVENTORY XXX OTHER PAYABLE XXX PREPAID EXP XXX TOTAL XXX TOTAL XXX LONG TERM LIABILITIES PROP PLANT & EQUIP PENSION LIABILITIES XXX EQUIPMENT XXX BOND LIABILITIES XXX BUILDING XXX TOTAL XXX LAND XXX TOTAL LIABILITIES XXX TOTAL XXX OWNERS EQUITY TOTAL ASSETS XXX COMMON STOCK XXX RETAINED EARNINGS XXX TOTAL XXX TOTAL LIA + OWN EQU XXX