Concepts in Accounting + SUSHI PLACE ANALYSIS

What is shareholders equity?

• Shareholders' equity is the number of shares owned by company executives

• Shareholders' equity is the total revenue of a company

• Shareholders' equity is the difference between a company's total assets and total liabilities.

• Shareholders' equity is the amount of money a company owes to its creditors

Define current liabilities.

• Current liabilities are revenues generated by a company.

• Current liabilities are debts or obligations that are due within one year or the operating cycle of a company, whichever is longer.

• Current liabilities are long-term debts of a company.

Explain long-term liabilities.

• Long-term liabilities are expenses incurred in the current accounting period

• Long-term liabilities are short-term debts

• Long-term liabilities are obligations that are due beyond one year from the date of the balance sheet.

What are tangible fixed assets?

• Physical assets with long-term use in the business.

• Financial assets with high liquidity.

• Virtual assets with no physical presence.

Describe intangible fixed assets.

• Intangible fixed assets are assets that can be easily converted into cash.

• Intangible fixed assets are non-physical assets that have no physical substance but hold value for a company, such as patents, trademarks, copyrights, and goodwill.

• Intangible fixed assets are physical assets like machinery and equipment.

• Intangible fixed assets are assets that do not hold any value for a company.

What falls under current assets?

• Cash, accounts receivable, inventory, prepaid expenses

• Long-term investments, notes receivable, deferred charges

• Goodwill, patents, trademarks

• Land, buildings, equipment

How is shareholders equity calculated?

• Total Assets x Total Liabilities = Shareholders Equity

• Total Assets - Total Liabilities = Shareholders Equity

• Total Assets + Total Liabilities = Shareholders Equity

• Total Assets / Total Liabilities = Shareholders Equity

Give examples of current liabilities.

• Examples of current liabilities include accounts payable, wages payable, and short-term loans.

• Accrued expenses

• Long-term loans

• Property, equipment, and machinery

What distinguishes long-term liabilities from current liabilities?

• Amount of liabilities

• Timeframe within which the liabilities must be settled

• Interest rates

• Credit rating

Provide examples of tangible fixed assets.

• Inventory, patents, trademarks

• Cash, investments, prepaid expenses

• Land, buildings, machinery, vehicles, equipment

• Goodwill, copyrights, accounts receivable