INTG 201 Lecture 13: INTG201 Financial Statement Accounting Part 2 Lecture Notes

• School: McGill University
• Department: Integrated Management
• Course: INTG 201
• Professor: Mary Maguire

Document Summary

Intg201 financial statement accounting part 2 lecture notes. Statement of financial position, shows the financial position of the companies: assets = liabilities (eg. bank loan) + equity (eg, assets = liabilities (eg. bank loan) + equity (eg. investment/profit) What you own (left side), where your money comes from (right side) must be equal. Resou(cid:396)(cid:272)es (cid:894)assets(cid:895) (cid:271)ala(cid:374)(cid:272)ed (cid:449)ith (cid:271)o(cid:396)(cid:396)o(cid:449)i(cid:374)gs (cid:894)lia(cid:271)ilities(cid:895) a(cid:374)d o(cid:449)(cid:374)e(cid:396)"s (cid:272)o(cid:374)t(cid:396)i(cid:271)utio(cid:374) a(cid:374)d earnings from the firm (equity) Current assets are cash and other assets expected to be realized (into cash): within one year from the balance sheet date or, within the normal operating cycle, whichever is longer. Inventories, eg. including goods for sale and work i progress: prepayments (prepaid expenses), eg. office supplies, rent, insurance. Similar to short term investments but for a longer period of time, more than one year: could be the same stock, just depends on the intention. Investment in a subsidiary (cid:373)o(cid:396)e tha(cid:374) 5(cid:1005)%, u(cid:374)de(cid:396) so(cid:373)eo(cid:374)e"s (cid:272)o(cid:374)t(cid:396)ol(purchase of share of company, a shareholder)