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17 download_doc-2.php - A311 (1/22/09) Accounting...

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A311 (1/22/09) Accounting Identities for an individual firm are based on the idea that financial statement users need to know about: Economic resources of firm Claims against those resources Changes in resources and claims Economic Resources ≈ Assets* *“…probable future economic benefits owned or controlled as a result of past transactions.” Categories of Assets: (1) Financial Assets – assets either denominated or directly realizable in monetary units (e.g., US Dollars) a. Cash and cash equivalents b. Marketable securities (e.g., stocks, bonds, options, etc.) c. Notes Receivable (…Formal contract to receive payment) d. Accounts Receivable (…informal contract to receive payment) (2) Capital Assets – assets used in producing goods and services; Examples: a. Land, buildings, equipment “owned” b. Intellectual property (patents, copyrights) c. Leasehold Improvements “controlled” d. Property held under capital lease (3) Accrued Revenues, Prepaid Expenses, Deferred Costs
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This note was uploaded on 04/18/2011 for the course BUS 311 taught by Professor Palmer during the Winter '11 term at Indiana.

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17 download_doc-2.php - A311 (1/22/09) Accounting...

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