UGBA 10 Lecture Notes - Lecture 4: Net Income, Gross Profit, Earnings Before Interest And Taxes

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: Briginshaw

Document Summary

Current asset asset that can be or will be converted into cash within a year. Liquidity- case w/ which an asset can be converted into cash. Fixed asset asset w/ long-term use or value such as land, building, and equip. Depreciation- accounting method for distributing the cost of an asset of its useful life. Intangible asset non-physical asset, such as a patent or trademark that has economic val in form of expected ben. Goodwill amount aid for existing business abv the val of its other assets. Bal sheet can be used by investors . Breakdown of assets and how they ae financed. Calculation of useful ratios such as current ratio - Indicator of liquidity rule of thumb is the ration should be greater than 2:1 (pg. The current ratio for coke and walmart shows a lower level of liquidity, below 2, the rule of thumb get away w/ it bc have shown that they can liquefy in other ways.