1. Balance sheet BALANCE SHEET CURRENT ASSETS CURRENT LIABILITIES Cash $ $ X.XX Accounts payable Notes payable Marketable securities X.XX Accounts receivable X.XX Accrued liabilities Inventories X.XX Other current liabilities Prepaid expenses X.XX Total current liabilities Other current assets X.XX LONG-TERM LIABILITIES Total current assets $ $ X.XX Long-term debt Other long-term liabilities LONG-TERM ASSETS $ X.XX Total liabilities XXX EQUITY Property, plant, and equipment Less: accumulated depreciation Net property, plant, and equipment Intangible assets Total net fixed assets $ X.XX Preferred stock X.XX Common stock $ X.XX Total assets $ X.XX Retained earnings Total common equity Total liabilities and equity Check Your Understanding If a firm buys materials on credit from a supplier, has been created An obligation the firm is expected to meet within the next year is called The account labeled represents an ownership stake in the company A firm's are the value of the firm's long-term assets (including property, plant, and equipment) minus the assets True or False: If you add up all the depreciation expenses from each year of a firm's existence, that would equal accumulated depreciation False True