1. Financial Records Obj. 6.02

2. Assets An Asset is a personal item that you own Current Assets are items that can be sold within one year. (livestock, crops) Non-Current Assets are items that are used for more than one year. (breeding livestock, land)

3. Liabilities A liability is debt Current Liability is due to be paid this year. (feed) Non Current Liability is not due to be paid this year. (future mortgages)

4. Formulas For Financial Records Total Assets = current assets+ non current assets Total Liabilities = current liabilities + non current liabilities Net Worth = total assets – total liabilities

5. Inventory An Inventory is an itemized list of things owned by a business with the beginning value and depreciated value Non-Depreciable Inventory are items that will be used up or sold within one year. (feed) Depreciable Inventory items that have a useful life more than one year. Loses value because of age (car)