Resources owned by a firm represent its ‘assets’ and are divided into ‘current and noncurrent’ assets. This finance course defines ‘assets’ and explains how they can be documented on a balance sheet. We discuss existing assets such as cash inventory bank accounts and ‘accounts receivable’. We then examine noncurrent (long-term) assets like land buildings and equipment. The course then shows you how to identify and maintain control over current obligations which include ‘accounts payable’ unearned income and salary payables.We then delve into long-term debts such as mortgages ‘notes payable’ capitalised leases and bonds. We also lay out the reporting requirements for loss contingencies and discuss how to evaluate bond issues. The course then explains how to prepare an income statement a financial record that lists a company's revenues and expenses. We compare the processes of creating the income statement in a single step and using a multiple-step approach.The course shows you how to recognise the typical sections of income statements. We discuss how the nature of a business affects the presentation of its income statement. Lastly we describe inventory cost flow assumptions and their various methods used (including ‘First-in First-out’ (FIFO) ‘Last-in First-out’ (LIFO) and the ‘average’ method) and trace their effects on financial accounts. This finance covers many important business and accounting concepts so sign up to learn how to read financial statements and sharpen your analytical skills.