MAA103 Lecture Notes - Lecture 8: Accounts Payable, Current Liability
12 Sep 2018
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Document Summary
Are withdrawals of cash or other assets by the owner for person use. Decreases in owners" equity that result from operation the business. Cost of assets consumers or services in process of earning revenue. E. g. utility, rent, supplies and tax expenses. Cash balance at start add cash inflows equals cash available less cash payments equals cash balance at end. When a business does not collect cash at the point of sale, a mismatch in timing occurs between sales revenue and cash collections. Budgeted statement of financial position (budgeted balance sheet) A projected balance sheet summarises a business" expected financial position at the end of a budget period. Summarises the projected assets, liabilities and owners" equity at the end of the budget period. Non-current assets are those whose benefits last more than 12 months e. g. property, plant, equipment. Current assets are benefits realized within 12 months, providing future resources such as capital and ability to pay current liabilities e. g. cash, inventory.
