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More on Assets - Your Balance Sheet and Intangibles Other Current Assets. Other Current Assets consist of prepaid expenses and other miscellaneous and current assets. Fixed Assets. Fixed assets represent the use of cash to purchase physical assets whose life exceeds one year. They include assets such as: Land Building Machinery and Equipment Furniture and Fixtures Leasehold Improvements Intangibles. Intangibles represent the use of cash to purchase assets with an undetermined life and they may never mature into cash. For most analysis purposes, intangibles are ignored as assets and are deducted from net worth because their value is difficult to determine. Intangibles consist of assets such as: Research and Development Patents Market Research Goodwill Organizational Expense In several respects, intangibles are similar to prepaid expenses; the use of cash to purchase a benefit which will be expensed at a future date. Intangibles are recouped, like fixed assets, through incremental annual charges (amortization) against income. Standard accounting procedures require most intangibles to be expensed as purchased and never capitalized (put on the balance sheet). An exception to this is purchased patents that may be amortized over the life of the patent. Other assets. Other assets consist of miscellaneous accounts such as deposits and long-term notes receivable from third parties. They are turned into cash when the asset is sold or when the note is repaid. Total Assets represent the sum of all the assets owned by or due to the business. Print this out if you feel you need to. Some great information to help you understand your balance sheet. Tomorrow, I'll begin posting about Liabilities and Net Worth . See you here. Suzie Suzie's Business Startups Blog. Looking for info on food? Find it at Suzie's Delicious Food Blog Posted: Saturday 22nd January 2005, 12:25 AM

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