Nov 2, Accounting - Accounting Balance Sheet Shows...

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Accounting Balance Sheet Shows financial position of a company at a specific date. (What they own and owe) Asset Something the company owns that they can a monetary value to Current Asset Cash or any other asset that can be converted to cash or consumed in a year. Listed in order of declining liquidity Declining Liquidity 1. Cash 2. Market security – large cap stocks that can turn into cash in 24 hours. 3. Accounts Receivable – money owed in less than 31 days 4. Notes Receivable – money owed in more than 31 days 5. Inventories – finished goods 6. Prepaid expense – this goes on balance sheet, not info statement. i.e. Buying insurance in advance or meal plan Liability – what company owes Current Liability – money owed right power Fixed Assets – something company uses in day to day operations (no specific order) 1. Land price at date of purchase 2. Building and equipment depreciates in price. It’s depreciation is a write off.
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This note was uploaded on 12/08/2009 for the course TEFLER ADM1300 taught by Professor Koppel during the Fall '09 term at University of Ottawa.

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Nov 2, Accounting - Accounting Balance Sheet Shows...

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