- It is a good time to stop and revisit the definitions of these accounting variables on the asset side of the balance sheet. Match each of the following items with their definition or description. Each item may be matched with 1 or more descriptions. ]Firm assets held in cash-like accounts, U.S. Money Market Funds example alents A. Long Term Liabilities - Included in Current Assets and is the most liquid asset B. Accounts Payable Assets or payments that the firm has not yet received from their customers C. Cash and Cash Equivalents These might be received by the firm 30, 60, or 90 days in the future and depend on Supply Chain Contracts D. Inventory Assets expected to be used for more than one year E. Fixed Assets Also called Long Term Assets, or in this class as Property Plant and Equipment (which we will treat as the F. Notes Payable only Long Term Asset) G. Retained Earnings Products or services being helpd for sale (accounting treatments can vary) H. Accounts Receivable These items represent wages and taxes based on the current pay period but that haven't been paid out yet 1. Accruals A form of short term debt usually through a financial intermediary (notice that in this class the term debt is different than the term liability) These are claims that need to be paid to the firm's suppliers for product or services already received and are based on supply chain contracting - This represent borrowing longer than one year and is the firm's long-term debt This variable combined with long term debt equals the firm's Total Debt in this class (See section 3-2A) - v Accumulated profit that has not been paid out to shareholders