Balance Sheet Cont.
• Assets inside AEC firms are mostly Cash, Accounts Receivable (money owed by clients) and Work In Process (WIP, or the $ value of work completed by not yet invoiced to clients) • Fixed Assets include computers and software. Some AE firms do have meaningful equipment inventories
• Liabilities generally small • Accounts Payable (AP, money owed to vendors, including sub- consultants) • Maybe some debt
THE PRINCIPALS ACADEMY 2022 106
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