(10 min.) Amounts are in millions of Euros.
Rental, leasing, interest, and insurance expense
To recognize the expiration of prepaid
rental, leasing, interest, and insurance assets.
Current liabilities are obligations that fall due within the coming year (or within one
operating cycle, if longer than a year). Long-term liabilities fall due beyond 1 year
from the balance sheet date, or beyond the operating
Marketable securities may be either short-term or long-term investments. Short-term
refers to intention, not to salability.
Trading securities are debt or equity securities that a company buys only with the
Tangible assets are those that can be seen and touched. Intangible assets are rights or
economic benefits that are not physical in nature.
All three terms refer to an allocation of costs over time. Reduction of i
The preemptive privilege gives present shareholders the opportunity to purchase
additional shares directly from the corporation before new shares can be sold to the
general public. In this way, the shareholders ar
Sales transactions are accompanied by recording of the cost of goods sold (or cost of
sales). This is literally true under the perpetual system and conceptually descriptive
under the periodic system.
The two step
The two-pronged test for revenue recognition is: (1) the goods or services must be
delivered to the customerthat is, the company has earned the revenue, and (2) the
company must have received cash or an asset virtual
The theme of this solution is that retained earnings is not a pot of cash awaiting
distribution to stockholders.
No. All public companies provide a statement of cash flows because it is a required
statement with a required format under both U.S. GAAP and IFRS.
A cash flow statement shows the sources of changes in cash balances and
Brisbane purchased $2,500 of store fixtures on account.
Owner or owners withdrew $2,000 cash.
Brisbane returned $5,000 of its inventory of computers for $5,000 credit against its accounts payable.
In addition to the basic financial statements, annual reports generally contain footnotesto
the statements, including a summary of accounting policies; the managements
discussion and analysis of the financial results; the re