Assets Represent the Company’s Resources

To qualify as an asset, the following requirements must be met:

Exhibit 6.2. Assets Typically Consist of (But are Not Always Limited to):
ASSETS
Cash and Cash Equivalents	Money held by the company in its bank accounts
Marketable Securities (Short-Term Investments)	Debt or equity securities held by the company
Accounts Receivable	Payment owed to a business by its customers for products and services already delivered to them
Inventories	Represent any unfinished or finished goods that are waiting to be sold, and the direct costs associated with the production of these goods
Property, Plant, and Equipment (Fixed Assets)	Land, buildings, and machinery used in the manufacture of the company’s services and products
Goodwill and Intangible Assets	Nonphysical assets such as brands, patents, trademarks, and goodwill acquired by the company that have value based on the rights belonging to that company
Deferred Taxes	Potential future tax savings arising when taxes payable to the IRS are higher than those recorded on financial statements
Other (Miscellaneous) Assets	Items that do not fit into other categories, such as prepaid expenses, or some types of short-/or long-term investments

Exercise

Q1:

Which of the following accounts are assets for Microsoft?

	Cash
	An office building owned by Microsoft
	Microsoft’s software inventories
	Microsoft’s employees
	Microsoft’s brand name
	Bill Gates’s personal car

Solution

Q1:

Which of the following accounts are assets for Microsoft?

	Cash
	An office building owned by Microsoft
	Microsoft’s software inventories
	Microsoft’s employees [Value cannot be measured]
	Microsoft’s brand name [Not acquired at measurable cost]
	Bill Gates’s personal car [Not owned by company]

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.

Table of Contents for Assets Represent the Company’s Resources