On the liability side, trade creditors will be paid regularly, then the short term bank loans, longer term loans and so forth. Don't forget that you can click one of the red reference numbers anytime to view the sample Balance Sheet. As noted previously, anything of value that is owned or due to the business is included under the Asset section of the Balance Sheet. Current assets are those which mature in less than one year. Cash is the only game in town.
Cash pays bills and obligations.
Inventory, receivables, land, building, machinery and equipment do not pay obligations even though they can be sold for cash and then used to pay bills. If cash is inadequate or improperly managed the company may become insolvent and be forced into bankruptcy. Include all checking, money market and short term savings accounts under Cash. For more on cash management, go to the lesson on cash management and cash flow projections. . Accounts receivable are dollars due from customers .