Are the
may be in the form of
Explains
the amount of
that have a
are
Are
likely to be
Liability accounts for
provides
represent
liabilities that are

Net working capital

Current Liabilities

be paid within one year.

Accounts Payable

amounts owed to suppliers

Supplier

goods and services

Taxes Payable

Taxes owed to government entities.

Accrued expenses

Recognized when incurred but not yet paid.

Current Assets

Converted into cash within 1 year.

Prepaid Expenses

Future expenses already paid

Assets

what a company owns

Liabilities

amounts owed to other entities

Long-Term Liabilities

Debts to be repaid after 1 year.

working capital

Cash and current assets available after accounting for current liabilities.

long-term asset

useful life of more than a year

Cash

actual money available

Cash flow

cash inflows and outflows

Inventory

raw material, goods in process, or finished goods

Accounts Receivable

Amounts due from customers

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