201Lec02 - 201Lec02.PPT More on Financial statements . . ....

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1 More on Financial statements . . . More on Financial statements . . .     A BALANCE SHEET: i - changes constantly (every time an activity occurs) ii - shows assets, liabilities and equities as of a specific date . iii - uses original cost (cost principle) for most items. iv - Only shows items that can be expressed in monetary units ($) 201Lec02.PPT
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2     Generally contains the following standard  classifications: The Classified Balance Sheet The Classified Balance Sheet The Classified Balance Sheet The Classified Balance Sheet A S S E T S     urrent Assets ong-Term Investments roperty, Plant, and Equipment ntangible Assets urrent Liabilities ong-Term Liabilities LIABILITIES tockholders' Equity
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Assets that are expected to be converted to cash or used in the business within a short period of time, usually one year. Current assets are listed in order of liquidity (convert them to cash) . Examples: Cash Short-term investments Receivables Inventories Supplies on hand Prepaid expenses 3 Current Current Assets Assets Current Current Assets Assets
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4 Assets That A Company Depreciates. .. Subtotals are usually made for current items:  CHUCK CORPORATION Balance Sheet December 31, 2011 Assets Current Assets: Cash $ 2,000 Accounts receivable 4,000 Total Current Assets $ 6,000 Equipment 24,000 Less: Accumulated Depreciation 8,000 16,000 Total assets $22,000
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This note was uploaded on 03/08/2012 for the course BUS ADM 201 taught by Professor Konkel during the Spring '08 term at Wisconsin Milwaukee.

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201Lec02 - 201Lec02.PPT More on Financial statements . . ....

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