Assets - Liabilities = Owner's Equity
Assets are the values controlled by a company, all business email list of which are measured in currency. Companies use assets to create value. For example, a factory is an asset that a company uses to produce products. Consider the form and origin of the asset: The asset is not just cash at the bank, it could also be money owed by the customer to the company, called accounts receivable.
Liquid assets are those assets that can be easily converted into cash within a year, including bank cash, marketable securities, accounts receivable and inventories. Liquid assets (as this term is often called) are part of existing assets, and refer to assets that are essentially already liquid, such as cash and marketable securities.
Fixed assets are those assets that cannot be quickly converted into cash, including buildings, production equipment and land. These are often collectively referred to as property, plant and equipment.
Intangible assets are financial representations of intangible things that have monetary value, including patents, brands, intellectual property (knowledge held), and goodwill. The value of intangible assets is difficult to measure, but companies and accounting authorities are looking for ways to measure them.
Liabilities usually represent the way assets are raised. When your company has debt, it needs to be repaid at some point, either in the near term or a long time in the future, so it represents a future cash outflow. Just like assets, there are two types of liabilities: current liabilities and long-term liabilities.Product managers should be able to review and analyze financial statements. When business and finance people discuss terms such as gross profit, depreciation, working capital, and cash flow, product managers should understand the meaning of these terms and be able to easily discuss financial issues with them.