Assets are resources of the business enterprise. The operating cycle is the length of time it takes to turn the investment of cash back into cash. Most firm's operating cycle is less than one year. Plant assets are physical assets, such as buildings and equipment.
Intangible assets are assets having no physical existence, such as patents and trademarks.
Intangible assets may be amortized over some period, which is akin to depreciation. Liabilities are obligations of the business enterprise. Current portion of long-term indebtedness. Short term bank loans. Long-term liabilities are obligations due beyond one year.