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 its 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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Ch 7 Notes - - Current Liabilities Accounts Payable...

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