Class2&3 - Part2

Class2&3 - Part2 - accounting...

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Accounting Review – Part 1
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Accounting and Finance Finance uses information created by  accounting Accounting statements report BOOK  VALUE of assets, but what matters for  financial decisions is usually MARKET  VALUE of assets The balance sheet provides the book value of the  assets, liabilities, and equity. Market value is the price at which the assets, liabilities  ,or equity can actually be bought or sold.
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Financial Statements Balance Sheet Income Statement Statement of Cash Flows
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Balance Sheet The balance sheet is a snapshot of the firm’s  assets and liabilities at a given point in time Assets are listed in order of decreasing liquidity Ease of conversion to cash Without significant loss of value Balance Sheet Identity Assets = Liabilities + Stockholders’ Equity
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Balance Sheet Has to Balance
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This note was uploaded on 01/29/2012 for the course BUSI 408 taught by Professor Croce during the Summer '08 term at UNC.

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Class2&3 - Part2 - accounting...

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