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Unformatted text preview: • Fixed Assets – Assets held for more than one year.
– Machinery and equipment
Land • Other Assets – Assets that are not current assets or
– Goodwill 3 - 11 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet Terminology
• Debt (Liabilities)
– Money that has been borrowed and must be
repaid at some predetermined date
– Debt Capital
• financing provided by a creditor
• Current or short-term debt and long-term debt
• Current or short-term must be repaid within the next 12
months 3 - 12 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Balance Sheet Terminology
• Current Liabilities:
– Accounts payable
• Credit extended by suppliers to a firm when it purchases
inventories – Accrued expenses
• Short term liabilities incurred in the firm’s operations but not yet
paid – Short-term notes
• Borrowings from a bank or lending institution due and payable
within 12 months
within • Long-Term Debt
– Loans from banks or other institutions for longer than 12 months 3 - 13 Foundations of Pearson Chapter 3 Understanding...
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This document was uploaded on 01/16/2014.
- Winter '14