Lecture02 2010.09.12

Lecture02 2010.09.12 - Lecture 2 Overview of Financial Statements Balance Sheet Office Hours Office Hours Name Prof Taylor Patricia Blanco Jason

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Lecture 2 Overview of Financial Statements Balance Sheet
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Office Hours Office Hours Name Day Time Location Prof. Balakrishnan Wednesday 2:00 PM - 4:00 PM Acctg. Dept. Prof. Taylor Monday 10:00 AM - 11:00 AM Acctg. Dept. Wednesday 10:00 AM - 11:00 AM Acctg. Dept. Patricia Blanco Tuesday 12:00 noon - 1:00 PM SHDH 205 Thursday 12:00 noon - 1:00 PM SHDH 205 Jason Gianola Wednesday 12:00 noon - 2:00 PM SHDH 205 Sean Korduner Tuesday 1:00 PM - 3:00 PM SHDH 205 Chinelo Mba Tuesday 3:00 PM - 5:00 PM SHDH 205 Aldric Ng Thursday 3:00 PM - 5:00 PM SHDH 205
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Goal of Today’s Class • Understand the four financial statements • Understand which business processes and transactions are reflected in each financial statement • Understand how the four financial statements fit together
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Reporting Business Activities Obtain Financing Issue debt and stock Make Investments Purchase land, bldgs, inventory, etc. Conduct Operations Sell goods and services to customers Pay employees, suppliers, creditors Balance Sheet Balance Sheet Assets Income Statement Net income
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Balance Sheet - Outline • Define – Assets – Liabilities – Shareholders’ Equity • Balance sheet classification • Valuation
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Balance Sheet • Reports the financial condition of the firm at a given point in time • Assets = Liabilities + Shareholders’ Equity Resources = Finances • Core financial statement • Other financial statements provide details of the changes in components of the balance sheet
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Big bank bloodbath fears. They’re ba-ack! September 8, 2010 2:51 PM ET CNN/Money “It's easy to understand why investors are worried that history may be repeating itself only two years after the banking sector spectacularly imploded…In the U.S., there are still legitimate concerns about credit quality and the so-called toxic assets that many banks have yet to dump…” What is a “toxic asset”, where does it appear on the financial statements? In the news… “There are a lot of unknowns. What are the balance sheets of the banks really like? What do they own? That's an issue for many banks that clouds the issue…The credit woes may only get worse as unemployment stays stubbornly high and the housing market remains a mess. Banks may have to reckon with more bad loans tied to mortgages, credit cards and commercial real estate …The problem with the banks is they are so heavily weighted with real estate and they're basically gambling. They are holding all this property and waiting for prices to go up.”
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In the news…
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This note was uploaded on 03/02/2011 for the course ACCT 101 taught by Professor Armstrong during the Fall '09 term at UPenn.

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Lecture02 2010.09.12 - Lecture 2 Overview of Financial Statements Balance Sheet Office Hours Office Hours Name Prof Taylor Patricia Blanco Jason

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