Class 9_07 & 08_10 - Ch 2

Class 9_07 & 08_10 - Ch 2 - Agenda Questions?...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 Questions? Textbook – Chapter 2 Agenda
Background image of page 1

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

View Full DocumentRight Arrow Icon
Page 2 Let’s go back to the Balance Sheet but with a little more formality and details Comprised of assets (economic resources) and liabilities & equity (sources of financing) Assumptions used Separate-entity Unit-of-measure Continuity Historical cost principle Basic Accounting Equation: Assets = Liabilities + Equity Assets are listed in order of liquidity Current Assets will be converted to cash within 1 year Cash, Inventory, Accounts Receivable, Investments? Non-current Assets will be converted after 1 year Investments?, Equipment, Building, Land, Intangibles Liabilities are listed in order of maturity – how quickly will we need resources to satisfy Current Liabilities will be paid within 1 year Accounts Payable, Short-term debt Non-current Liabilities will be paid after 1 year Long-term debt Financial Statements
Background image of page 2
Page 3 Use accounts to track activity
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Class 9_07 & 08_10 - Ch 2 - Agenda Questions?...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online