Assets and liabilities classifications Current assets Cash or assets that are the equivalent of cash + Prepaid investments + Investments + Assets that are being held for sale + Inventories + Trade and other receivables + Office supplies «Prepaid expenses + Marketable securities + Accounts Receivables Long-term investments + Land purchased for speculation + Funds redeemable for insurance policies + Investments in other companies stock + Money that has been set aside for a plan expansion program Fixed assets (also known as property, plant and equipment) + Land + Product equipment + Computer hardware + Computer software + Leasehold improverrents + Accumulated depreciation + Furniture and fixtures Intangible assets + Accumulated amortization + Goodwill + Purchased patents + Copyrights + Rights under a franchise agreementCurrent liabilities + Trade and other payables + Liabilities held for sale + Accounts payable + Notes payable + Accruals payable + Mortgage payable + Bonds payable + Accrued expenses * Current tax liabilities * Other financial liabilities + Current portion of loans payable Long-term liabilities * Deferred tax liabilities * Bankloans = Mortgage notes + Loans payable + Other non-current liabilities s i. + Retained earnings + Capital stock + Additional paid in capital ‘Simple income statement formula Net income = revenue - expenses. 1, Net sales = gross sales - sales returns & allowances ~ sales discounts 2. Starting (Beginning) inventory + purchases - ending inventory = cost of goods sold. 3. Gross Profit = Net Sales - Cost of Goods Sold Operating Income = Gross Profit - Operating Expense 5. Net Income = Operating Income + Non-Operating Items =