ADMS 1500 Lecture : ADMS 3
4 Jan 2013
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Document Summary
Because of very limited lecture time for this topic we have decided the following: there will be no coverage of ratios on the first mid-term examination or in lectures prior to the first mid-term. They will be covered in class 7 and the second mid-term examination: we will not be able to cover any examples in connection with class 3 it is therefore particularly important that you work through the problems. Balance sheet: evaluation document; assets and liabilities between long term and current. The liabilities and the equities (the right-hand side of the accounting equation) are listed and totalled. Situation 1: buy a truck with a bank loan. Situation 2: buy a truck with cash available. Situation 3: buy a truck with an issuance of new common shares. Asset = 1) truck (long term) does not get expense (not in income statement) The balance sheet lists things in order of liquidity:
