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PowerPoint 1 - Assets = Resources Properties with expected...

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Assets = Resources Properties with expected future economic benefits. Can be tangible or intangible Human resources (people) are not accounting assets.
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Yumatzu Co.’s Assets Land, Factory, Equipment, Raw Materials and Trucks. Factory Computers, Cash, Accounts Receivable, Home Office Building, Furniture, Telephones, Fax Machines and Office Computers. Prepaid Rent, Prepaid Advertising and a Trademark/Brandname.
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Assets Generate Revenues Assets are needed to generate revenues. Assume Yumatzu Company sells 4 TV’s on credit for $1,000 each. It costs $350 per unit to build the TV’s.
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The Accounting Equation Assets = Liabilities + Owner’s Equity + Revenues - Expenses $4,000 $4,000 Accounts Receivable Sales -$1,400 -$1,400 Inventory COGS
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Liabilities are -- Debts or obligations to sacrifice assets to the creditors. Liabilities are the creditors claims to the organization’s assets.
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Yumatzu Company borrows $300,000 from World Bank of London. The Debt is due in 10
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This note was uploaded on 06/14/2011 for the course ACG 2021 taught by Professor Larson during the Spring '08 term at Valencia.

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PowerPoint 1 - Assets = Resources Properties with expected...

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