Understanding Company Assets and Liabilities
Current Assets
Group the elements that stay with the company a short time (less than 1 year). It is divided into:
- Stocks: Items that are stored pending processing or use in processing or sale. Includes merchandise (items that the company acquires to be sold without transformation), raw materials, fuel, spare parts, office supplies, finished products, and packaging.
The difference between finished products and goods is that the former have been produced or manufactured by the company, while the goods are purchased for resale.
- Receivables: Trade and other receivables, customers (debts that the company generates that will become receivables in a more or less short period of time), customers, and receivables. Commercial paper: Customers have formalized through an effective business, usually a promissory note or bill of exchange. Debtors, receivables, and trade receivables effect: Public finance receivables for various concepts (debt finance for the company). Short-term financial investments: Short-term investments are short-term stock or shares of other entities. CP credits: Loans and other non-commercial loans granted to third parties. Credits CP on disposal of fixed assets: The credit operation is derived from a sale of assets. Taxation in the short term: Balances are favorable credit institutions formalized by time deposits.
- Cash: Includes the assets that are available in the form of cash, such as cash and bank accounts.
Equity and Liabilities Funding
Equity
Groups items will not be charged during the life of the company. With exceptions, they could only be claimed when the company is dissolved.
It represents enterprise value. This is directly related to the theoretical value or amount of the shares. Displayed:
- Social capital: Subscribed capital in companies.
- Capital: Representing the capital subscribed by individual entrepreneurs.
- Legal reserve: Statutory.
- Voluntary reserves: Freely set by the company.
- Statutory reserves: Established in accordance with the statutes.
- The result of exercise: Benefits or losses realized during the year.
Non-current Liabilities
Debts that are kept by the company with more than one year maturity. Includes:
- LP debts with banks.
- Long-term debt.
- Debentures and bonds (issuance of bonds by the company to obtain financing).
- Providers immobilized LP.
- Payables to the long term.
Current Liabilities
Includes:
- CP debts with banks.
- CP liabilities.
- CP immobilized providers.
- Bills payable to CP.
- Trade and other payables: Suppliers (debts to suppliers of goods, MP, services used in the production process, etc.).
- Suppliers, commercial paper to pay creditors for services (debts to suppliers of services).
- Creditors, commercial to pay (same as above).
- Creditor Treasury on taxes, social security agencies.
The Financial Obligations of the Company
Accounting Concept
It is an applied science that deals with the systematic registration of all economic transactions carried out by a company, as well as the process and data analysis and presentation of results.