COMM 217 Lecture Notes - Lecture 1: Union Dues, Book Value, Stock Split

• School: Concordia University
• Department: Commerce
• Course: COMM 217
• Professor: Steven Tamas

Document Summary

Market tests: ability to pay off long-term liabilities. Expenses (cost of sales, salary exp. , depr. exp. , loss on sale of asset, income tax exp. ) Statement of cash flows: (a) (cid:313) cash (cid:315) and (l) (cid:313) cash (cid:313) Operating activites: net income, depr. /ammort, gains/losses, current(a), current(l) Investment expenditures (cash inflow/outflow), p. p. e, s/t investments, goodwill. Financing activites (long-term debt and equity: bond payable, share capital, retained earnings (dividends), short-term borrowings. **additional notes: usually contribute to investing activities and financing activities. Bundle purchase: (cid:3028)(cid:3043)(cid:3043)(cid:3045)(cid:3028)(cid:3046)(cid:3032)(cid:3031) (cid:3049)(cid:3028)(cid:3039)(cid:3048)(cid:3032) (cid:3042)(cid:3033) (cid:3028)(cid:3046)(cid:3046)(cid:3032)(cid:3047: straight-line: (cid:3030)(cid:3042)(cid:3046)(cid:3047) (cid:3045)(cid:3032)(cid:3046)(cid:3031)(cid:3048)(cid:3028)(cid:3039) (cid:3049)(cid:3028)(cid:3039)(cid:3048)(cid:3032) (cid:3048)(cid:3046)(cid:3032)(cid:3033)(cid:3048)(cid:3039) (cid:3039)(cid:3033)(cid:3032, double-declining: (cid:1855)(cid:1853)(cid:1870)(cid:1870)(cid:1866) (cid:1874)(cid:1853)(cid:1864)(cid:1873)(cid:1857) (cid:4666)(cid:1866)(cid:1857)(cid:1872)(cid:1854)(cid:1867)(cid:1867)(cid:1863) (cid:1874)(cid:1853)(cid:1864)(cid:1873)(cid:1857)(cid:4667) . Impairment of asset: asset = impaired when recoverable amount less than carrying amount. Compare the higher of the two (cid:314) value in use vs. fair value. Goodwill: company purchases another company for more than its net asset value. Must be a present obligation due to past event. Probable that cash/asset will be required to settle obligation.