Cheat Sheet - Success Formula (Page 2 of 3) in pdf

Cheat Sheet - Success Formula Page 2

Term definition (1/2)

1. All the cash available to the company (in cash or on bank accounts) as well as any short term

investment that can be turned into cash in a matter of hours (stocks and bonds)

2. Money that will be received in the foreseeable future; two main categories for this course

A. Accounts: from your clients

B. Notes: from your debtors (people you gave money to)

C. Other: interest, tax, …

3. All the items you plan on reselling or that you plan on using in the manufacturing process (raw

materials)

4. Prepayment you made for services you will receive in the future (can be for rent, for utilities,

insurance, …)

5. All the buildings, land, machines, and equipment (tangibles) you use to run your business

(manufacturing or not). Compared to inventory, you do not plan on reselling (at least in the

short term)

A. HIDDEN: Accumulation depreciation (Contra account!): the book value your PPE lost over time

6. All the non-tangibles you use to run your business (logo, brand name, customer list, …). You

also do not plan on reselling those.

A. HIDDEN: Accumulate amortization (contra account!): exact same mechanism as depreciation but for

intangibles

Cheat Sheet - Success Formula Page 2