Key Assets

Question 1

Short term investments

Answer 1

Less liquid than cash

Question 2

Accounts receivable

Answer 2

Company has recorded this as revenue on income statement but hasn’t received in cash yet.

Will turn into cash when customer pays

Question 3

Prepaid expense

Answer 3

Company has paid these expenses in cash, but hasn’t recorded them as expenses on the income statement yet.

Question 4

Inventory

Answer 4

Parts needed to manufacture and sell products

Question 5

PP&E

Answer 5

Factories, buildings, land, equipment and anything else which will last over a year and contribute to the company’s core business.

Question 6

Other intangible assets

Answer 6

Patents, trademarks, etc usually the result of acquisitions.
- balance amortises over time as these items expire.

Question 7

Long term investments

Answer 7

Less liquid and longer-lasting investments than cash or short-term investments.

Question 8

Goodwill

Answer 8

Premium that the company has paid over other companies’ shareholders’ equity when acquiring them