BUS 082 Lecture Notes - Lecture 29: Conceptual Framework, Double-Entry Bookkeeping System, Balance Sheet

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

Sets out financial position as a particular point in time. Snap shot of assets, liability, and equity position. A resource controlled by the entity as a result of past events, and from which economic benefits are expected to flow to the entity. Characteristics: expected future economic benefit, exclusive right to control benefit, asset can be measured in monetary terms. Examples include cash, machinery and equipment, fixtures, patents and trademarks, accounts receivable and investments. Tangible (physical) or intangible (copyrights, goodwill etc. ) Claims against assets: external claims liabilities, internal claims owners" equity (claim of owner on assets of a business) Non-current assets: held for purpose of generating wealth, rather than for resale, tools of the business, held on a continuing basis for longer than one year, e. g. land. A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits .