Chapter 4 Notes

Chapter 4 Notes - Chapter 4 Balance Sheet provides...

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Chapter 4 Balance Sheet – provides information about the financial position of a company at a specific point in time - statement of financial position - “statement in transition” Assets – the economic resources of a firm; probable future economic benefits Liabilities – the economic liabilities of a firm; probable future economic sacrifices of benefits arising from present obligations Equity – the residual interest in the assets of an entity that remains after deducting the liabilities - known as stockholder’s equity for a corporation Market Value (current value or fair value) – the amount at which an asset could be bought or sold Non-current assets: - Investments and funds - Operating assets (property, plant, and equipment) - Intangible assets - Other assets Current Assets – cash and other assets that are reasonably expected to be realized in cash, sold, or consumed during the normal operating cycle or within one year form the balance sheet date Operating Cycle – the period of time in which a company purchases merchandise inventory, sells the inventory for cash or credit, and collects cash from sales Current Liabilities – economic obligations that are expected to be liquidated using current assets or refinanced by other current liabilities during the normal operating cycle or within one year of
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This note was uploaded on 03/29/2008 for the course ACC 310 taught by Professor Thomas during the Spring '08 term at N.C. State.

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Chapter 4 Notes - Chapter 4 Balance Sheet provides...

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