Ch 7 Notes - ← Current Liabilities • Accounts Payable...

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Chapter 7 Notes 19/03/2007 09:58:00 Chapter 7: Internal Control and Accounting For Cash Classified Balance Sheets - Every balance sheet we will look at for now on will now be classified balance sheets. - Current 1 year or less Assets 1. Current Assets Assets that can normally be converted to cash within a year. Property, Plant, and EQ 3. Intangible Patents, Trademarks, Copyrights 4. Goodwill 5. Other Assets - Current Assets Cash Accounts Receivable Inventory Prepaids Supplies Liabilities 1. Current Liabilities All debt due within a year. 2. Long Term (Non Current) Liabilities
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Unformatted text preview: ←- Current Liabilities • Accounts Payable • Unearned Revenue • Taxes Payable • Salaries Payable • Interest Payable ←- Notes Receivable will tell you if it’s current. ← ← Current Ratio ←- Current Ratio Formula Current Assets / Current Liabilities = Current Ratio ← ← Liquidity Is measured by current ratio. • How much cash can you come up with. ← ← Solvency Measures a companies long term ability to pay. • Way to find is the Debt/Asset Ratio. ← ← Petty Cash System Way to keep track of loose cash. ← 19/03/2007 09:58:00 ← 19/03/2007 09:58:00 ←...
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This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

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Ch 7 Notes - ← Current Liabilities • Accounts Payable...

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