{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 2-1a - Econ/Mgmt4Spring2010 continuedfrom13 Week2.1.a...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ/Mgmt 4 Spring 2010 Top-down View of Accounting  continued from 1-3  Week 2.1.a
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The  Balance Sheet –  everyone has one. It is based on the accounting equation. Yours’ Your Parents’ Your Employer’s All businesses Your Nation’s A Global Balance Sheet.
Image of page 2
The Accounting Equation Assets = Liabilities + Equity Assets – Liabilities = Net Assets = Equity Assets = Capital = Creditor & Owner Claims Claims & T h in g s=  Paper Obligations Monetary & Real Capital = Financial Capital 
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Assets Resources owned/controlled; measured by a  transaction: they can be … a)Tangible & intangible b)Monetary & non-monetary c)Current (“working) & non-current (“LLA”) d)Liquid & illiquid e)Operating & non-operating f) Purchased & created
Image of page 4
Assets in order of liquidity Cash Receivables – IOU’s from customers  (for prior sales) Inventory Pre-paid expenses FF&E PP&E IPR&D Goodwill
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Assets = Liabilities + Equity Monetary Assets  plus Real capital Tangible “things” and  Intangible “rights”.. Obligations  on “paper” Debt-type financial  capital – “paper’ A S S E T S LIABILITIES EQUITY Equity-type financial  capital – ‘paper’ Retained Earnings  “paper” reports
Image of page 6
The geography of the Balance Sheet Current Long-lived Current Non-current A S S E T S LIABILITIES EQUITY Paid-in Retained  earnings Liquidity  top-down: how quickly can the asset, liability, equity  be turned-into cash?
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern