BUSS1030 Lecture Notes - Lecture 6: Accounting Equation, Contingent Liability, Double-Entry Bookkeeping System
31 Jul 2018
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Fed flags relatively soon" cut to balance sheet. The federal reserve kept interest rates unchanged and said it expected to start winding down its massive holdings of bonds relatively soon in a sign of confidence in the us economy. After pushing rates nearly to zero to fight the 2007-2009 financial crisis and recession, the fed pumped over trillion into the economy in a bond-buying spree to further reduce rates. Its balance sheet has grown to . 5 trillion. Learning objective 1: explain the nature and purpose of the statement of financial position (balance sheet) and its component parts. Learning objective 2: explain the accounting equation, and use it to build up a statement of financial position at the end of a period. Classification of assets: current assets, are not held on a continuing basis. Include cash and other assets expected to be consumed or converted into cash within the next 12 months or operating cycle.
