I will be searching the annual report ofFacebookfor the financial year 2019.

Largest expense on the income statement is Research and Development of $ 13600 Millions.

Largest fixed asset on the balance sheet in terms of cost Network Equipment of $ 17005 Millions.

AssetsNature of AssetA) Current Assetsa) Cash and Cash EquivalentThis is classified as Level 1 or Level 2 because they are quoted at market prices.b) Marketable securitiesShort term highly liquid assets.This is classified as Level 1 or Level 2 because they are quoted at market prices.c) Accounts ReceivableThis is amount due from the customers.They are recorded at the original invoice amount less for any potential noncollectable amounts.d) Prepaid Expenses and other current assetsThis is unrestricted cash balance based upon term of remaining restrictions.B) Property,Plant & EquipmentThese are the assets used in the business operations to generate revenue.These are stated at cost less accumulated depreciation.

Difference between Current Liability and Long-term liability

Current Liabilities are the obligations due withing one year or normal operating cycle of the business, whichever is longer. These liabilities are generally paid with current assets.

Long-term liabilities are the debts of the business that are due beyond one year or normal operating cycle of the business. Long-term debt is the example of long-term liability and may include: leases, mortgage loan,bonds payable,deferred taxes etc.

I have selected annual report of Facebook Inc. because Face book is a popular global social networking website. It is one of the world's most valuable companies.It is considered one the Big Five technology companies along with Microsoft, Amazon, Google and Apple.

I really like the idea behind this kind of business model connecting people each other,making lot of friends,sharing our thoughts or opinion on the website at any time at any where. I am very familiar with this company because I am having Facebook account from the last 7 years and active in social media networking still today.

Examples on current liabilities, long-term liabilities, current assets and fixed assets

ItemsExamplesCurrent LiabilitiesAccount payable, Short term bank loan,Accrued income taxes, bills payable, Expense Payable, etcLong-term LiabilitiesLeases, Mortgage loan,Bonds payable,Deferred taxes,Current AssetsAccounts Receivable, Inventory, Cash and Cash Equivalents, Marketable Securities, Prepaid expensesFixed AssetsLand, Building, Plant and Machinery, Furniture and Fixtures, Equipment,etc

Link to company's annual report : https://investor.fb.com/financials/default.aspx

eceivables

Initial Post

Part 1 (Use the annual report of your selected company)

What are the three classifications of receivables?Which does your company have? Look in the notes to the financial statement to find out which method they use for writing off receivables.

Part 2

Dan's Hardware is a small hardware store in the rural township of Twin Bridges. It rarely extends credit to its customers in the form of an account receivable. The few customers who are allowed to carry accounts receivable are long-time residents of Twin Bridges with a history of doing business at Dan's Hardware. What method of accounting for uncollectible receivables should Dan's Hardware use? Why?

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