CLASSIFYING ASSETS AND LIABILITIES

     The following list has some of the assets and liabilities that may be difficult to classify on a balance sheet.  If people are inconsistent in classifying these items, it will be difficult to analyze trends and compare financial ratios between different farms.  See how those farms/ranches are performing in relations to each other and make various comparisons.  Print out this sheet and decide how they should be classified.

1)      Decide if the item is an asset or a liability  THEN

2)      Decide if it is a current asset/liability or a non-current asset/liability

      Hint:  Remember the definition of an asset and a liability.  Remember the time factor portion of current and non-current asset and liability definition.  This should help in determining each item below.

ASSET     -        CURRENT  OR  NON-CURRENT

LIABILITY   -   CURRENT  OR  NON-CURRENT

_______                    Cash value of life insurance

_______                    Retirement accounts

_______                    Personal savings account          

_______                    Breeding livestock

_______                    Accrued interest expense

_______                    Current portion of term debt

_______                    CCC loans

_______                    Government program payments receivable

_______                    PIK certificates

_______                    Net operating loss

_______                    Growing crops

_______                    Operating leases

_______                    Capital leases

  Work to be Submitted

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