INSTRUCTIONAL OUTLINE - NC FFA

COURSE:UNIT B:EQUINE SCIENCE IRECORDS IN THE EQUINE INDUSTRYCOMPETENCY: ES06.00 Explore methods of financial record keeping in an equinebusiness.OBJECTIVE: ES06.02 Record entries in a financial record system.The same material as was used for objective ES04.01 will be used to meet this objective.A. Terms (NCSU SAE Record Book)1. Asset—something tangible of value that a person owns.a. Current—items quickly converted to cash or that will be sold within 12months—examples: cash, checking, savings, stocks and non-depreciableinventory of crops, livestock, etc.b. Non-current—items that have a useful life of more than one year—examples:land, machinery, breeding livestock, etc.2. Liability-debtsa. Current—debts that are due to be paid this year—examples: fertilizer andfeed bills, tractors and building payments, and part of mortgage due thisyears.b. Non-current—debts not due this year—examples: mortgages not includingthis year’s payment.3. New worth = total assets minus total liabilities.a. Current assets + non-current assets = total assets.b. Current liabilities + non-current liabilities = total liabilities.4. Inventory—an itemized list of things owned by a business with the beginningvalue and depreciated value.a. Non-depreciable—items that will be used up or sold within a year—example:feed, supplies, etc.b. Depreciable—items that have a useful life of more than one year and losevalue because of age, wear or becoming out-of-date because of technologyadvancements. Land is NOT depreciable property.Summer 2003206825 Equine Science I