Final Review

Final Review - Current Assets Will be converted to cash or...

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CHAPTER 3 Balance Sheet Limitations: 1. The Balance sheet does not portray the market value of the entity as a going concern nor its liquidation value. 2. Resources such as employee skills and reputation are not recorded in the balance sheet. Balance Sheet Benefits: 1. Helps predict future cash flows 2. Provides liquidity information 3. Provides long-term solvency information
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Unformatted text preview: Current Assets Will be converted to cash or consumed within one year or the operating cycle, whichever is longer. 1. Cash 2. Cash Equivalents a. Commercial paper b. Money market funds c. U.S. Treasury bills 3. Short-term Investments 4. Receivables 5. Inventories 6. Prepaid Expenses...
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This note was uploaded on 02/07/2012 for the course ACG 4101 taught by Professor Lin during the Spring '09 term at FIU.

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