1. assets= future benefit
   1. current assets ( <= 1 yr/ <= the operating cycle)
      1. cash & cash equivalent
      2. short-term investments
         1. stocks <= 1 yr
         2. bonds <= 1 yr
      3. accounts and notes receivable
      4. merchandise inventory
      5. prepaid expenses
         1. ads
         2. rent
         3. insurance
         4. supplies
   2. long-term assets
      1. Property, Plant and Equipment
      2. intangibles
      3. long-term investments
2. liabilities
   1. current liabilities
      1. accounts payable
      2. income taxed payable
      3. short-term borrowing= short-term notes payable
      4. salaries and wages payable
   2. long-term liabilities
      1. long-term notes payable
      2. mortgage payable
3. stockholders' equity
   1. common stock = paid-in capital
   2. retained earnings