Companies consist of assets and liabilities.

The assets of the company are:

• Capital assets: The buildings, the real estate, the equipment and machinery of the company, and other kinds of long-term assets, which can be used for the business by virtue of ownership.
• Current assets: The inventory, the cash and cash equivalents, and the debts owed to the company from customers who purchased the company’s products, but have not paid for them yet.
  A company’s liabilities are:
• Long term debt: The amount of money that the company owes in loans to banks and other institutions for over a period one year is known as the long term debt.
• Current debt: The amount of money owed by the bank to different suppliers, like the short-term loans from banks like payroll obligations etcetera.