Finance 2013 Sept10 Accounting(1)

T debt total current liab total long term debt fixed

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Unformatted text preview: yable Short-Term Notes Payable Current portion of L.T. debt TOTAL CURRENT LIAB. TOTAL LONG-TERM DEBT FIXED ASSETS Plant (Facilities at cost) Accumulated Depreciation Accumulated Net Plant Net Equipment Equipment Accumulated Depreciation Accumulated Net Equipment Property (Land TOTAL FIXED ASSETS TOTAL SHAREHOLDER EQUITY Common Stock Preferred Stock Capital in Excess of Par Retained Earnings TOTAL EQUITY TOTAL TOTAL ASSETS TOTAL LIBILITIES & EQUITY TOTAL LIABILITIES TOTAL Limitations of the Balance Sheet Limitations 1. Does not reflect current value Cost basis for valuing/reporting assets & liabilities 1. Estimates must be used to determine level of Estimates several accounts several Accounts receivable (collectibility) Inventory (salability) Fixed assets (useful life) 1. Appreciation in asset values generally ignored Appreciation (although deprecation is accepted) (although 1. Many items of financial value are ignored because Many of difficulty in objective evaluation of E.g., Human Resources Reinvestment Cycle Re...
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This document was uploaded on 10/31/2013.

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