2. Financial Record Keeping in a Horticultural Business 6841.09

3. Asset Something tangible of value that a person owns

4. Current Asset Items quickly converted to cash or that will be sold within 12 months

5. Current Asset Examples: cash, checking, savings, stocks, and non-depreciable inventory of crops and livestock

6. Non-current Assets Items that have a useful life of more than one year Examples: land, machinery, and breeding stock

7. Liability/Debts Current – debts that are due to be paid this year

8. Liability/Debts Examples: fertilizer and feed bills, tractor and building payments, and part of mortgage due this year

9. Liability/Debts Non-current – debt not due this year Examples: mortgages not including this year’s payment

10. Net Worth Total assets minus total liabilities

11. Net Worth Current assets plus non-current assets = total assets

12. Net Worth Current liabilities plus non-current liabilities = total liabilities

13. Inventory An itemized list of things owned by a business with the beginning value and depreciated value

14. Inventory Non-depreciable –items that will be used up or sold within a year Examples: feed, supplies

15. Inventory Depreciable – items that have a useful life of more than one year and lose value because of age, wear, or becoming out-of-date because of technology advancements

16. Inventory Depreciable – land is NOT depreciable property

17. Financial Record Keeping in a Horticultural Business 6841.09