Читать книгу Entrepreneurial Finance - Robert D. Hisrich - Страница 35

Assets represent the tangible and intangible property that the venture owns and has accounting value. It is important to note that assets can be both physical assets and intangible assets. Examples of physical assets are inventory, company cars, and real estate. Examples of intangible assets are patents, copyrights, trademarks, and goodwill. Assets are usually ordered in the balance sheet in order of their liquidity. The most liquid assets appear first on the balance sheet followed by the least liquid ones. Current assets represent the most liquid assets of a venture, meaning they can more easily be turned into cash. Examples of current assets are cash, marketable securities, and accounts receivable.

A venture's requirement for current assets is dependent on its operating cycle. The operating cycle is measured based on the time it takes to convert an investment in cash into inventory and then back into cash proceeds from its sale to customers. As a general rule, the longer the operating cycle, the larger the venture's need for liquidity (i.e., cash).

Noncurrent assets may not be readily converted into cash and are usually subject to wide swings in value. These assets are composed of buildings, land, mineral interests, and equipment (ranging from computers to furniture). Assets in this category are “depreciated” over time. Depreciation is the “expensing” or “writing off” of an asset over its economic life. Depreciation affects the value of such items on the firm's books. The value of the asset is and lowered by a certain amount each year. The annual amount of depreciation depends on the type of item. The depreciation amount appears on the income statement (which we will cover next) and reduces taxable income. Accumulated depreciation is the cumulative sum of depreciation for physical assets such as property and equipment.

Intangible assets are assets other than real or tangible property and have no physical existence. They may or may not be reported on the balance sheet. Intangible assets can be and usually are amortized over time.