Tangible assets have a physical substance or form whereas intangible assets do not and are therefore difficult to evaluate. These include cash, securities, inventory, accounts receivable, etc. These include land, buildings, equipment, vehicles, fixtures and can include securities. Intangible assets are those that have value to the company but it is difficult to determine what the market value is due to lack of substance or form. These include patents, copyrights, customer lists, trademarks, etc.
Liabilities are broken-down into two categories, current and long term.
Equity includes retained earnings, capital, common stock, preferred stock, paid in capital, treasury stock. In our next article we will break down the categories of the balance sheet and determine what questions need to be answered during our analysis. We will decide, also, what needs to be added to or deleted from the balance sheet and why. I wish you well. Tx Website by Creditworthy Co.