Assets: What your company owns 
The items that a company owns are called assets and are divided into two categories, current and long-term and within these two categories are several sub groupings.
How does one decide which asset account an item should be placed in? A good determination would be how fast you can turn it into cash if you need to. The things that can be turned into money in your pocket within a short period of time belong in the current section and the assets that would take a minimum of three months to sell belong in the long term classification.
Obviously cash and savings are current assets, but so are your accounts receivable (as long as you usually collect them within 30 days) and inventory (as long as you turn it within 30 days).
Your office building and company vehicles are long term assets. With the real estate market having an abundant inventory of office buildings and the penny saver having hundreds of trucks for sale these assets are not a good place to look for fast cash.
There are three reports that make up the cornerstone of a company’s financial statements. They are the Balance Sheet, Income Statement and Cash Flow Statement.
