00:01
Asking us to find what our total asset value is and basically it wants us to know which of these accounts are assets and which are not so first to note is that if it's a liability one term that is often a liability is the term payable because that means that you owe money to someone else so that's a liability not an asset so you'll see in this problem accounts payable salaries payable, taxes payable, all three of those are liabilities, not assets because we are liable, we are needing to pay that amount.
00:43
Assets are anything that is owned by the company that can be converted to cash, so that is valuable to the company basically.
00:54
So cash itself, supplies, equipment, those kind of things are all assets.
01:02
So let's write down our list of assets here and add them up.
01:06
So first we have cash for 16 ,080.
01:14
And then we have accounts receivable and that means someone owes us money.
01:19
So like we performed a service maybe and they haven't paid us yet.
01:24
That's accounts receivable.
01:25
That's 9500.
01:27
Supplies.
01:28
And that could be a lot of different things.
01:30
But again, they hold value and so their assets.
01:34
It's not something we owe someone else.
01:39
Prepaid expenses are also considered an asset...