Components in FSA terms terms

AndyNZ

I've been having trouble in quite a few problems where I'd remember the names of the components in a FSA formula for calculating certain things, but then can't find the right subcomponents when reading the actual B/S and I/S.

Can anyone help me figure out what is actually in:

1) Current Asset
2) Current Liability
3) Non-cash Asset
4) Non-cash Liability
5) Net Operating Income
6) Operating Asset
6) Operating Liability

Is inventory current or non/current, considered cash or non-cash component?

Thanks!!!

tianxin

I suggest you go back to L1 material and read up on this stuff. Inventory is current & non-cash.

troymo

1) Current Asset
Cash & Cash Equivalents, Accounts Receivable, Inventory, Prepaid Expenses, Other Current Assets

2) Current Liability
Accounts Payable, Accrued Expenses, Unearned Revenues, Current Portion of Long Term Debt

Not sure how these are different from 6 & 7

5) Net Operating Income
Earnings Before Taxes & Interest = Sales - COGS - SG&A - Depreciation

6) Operating Asset
Total Assets - Cash

7) Operating Liability
Total Liabilities - Total Debt

OmarAdnan

Current asset or liability is usually described as being able to convert to cash within a year.
Current assets- inventory, cash, short term securities, accounts receivable, etc.
Current liabilities- accounts payable, debt maturing within a year, accrued salary, etc

I'd suggest looking at a one product company's 10K, like CROX, and going through the balance sheet and income statement.

On the balance sheet, from top-down, the assets and liabilities begin with most liquid(current) like cash, and work down to less
liquid like PP&E.

With net op profit, google "income statement constructionn or format" and you should be able
to find an example that shows the progression.

thecfawannabe

Thanks everyone. Guess I should have taken an accounting 101 course back in college...

firat

Oops, is the monetary asset and monetary liability (used in calculating exposure in temporal method) the same as current asset and current liability???

tarunajwani

no, monetary assets are things w/ monetary value, such as cash equivalents, if you buy a building for your company thats not a monetary asset, pp&e isn't monetary assets i'm pretty sure.