BUSI 1101 Lecture Notes - Lecture 13: Faithful Representation, Share Capital, Accounts Payable
Document Summary
Obligations that are to be paid or settled within the (longer of the) coming year or one operating cycle. Examples: bank indebtedness, accounts payable, unearned revenue, bank loans/notes payable, current maturities of long-term debt. Debts expected to be paid or settled after one year. Examples: bank loans/notes payable, lease obligations, pension and benefit obligations, deferred income tax liabilities. Usually accompanied by extensive notes to the financial statements. Share capital: investment of cash (or other assets) in the company by shareholders in exchange for preferred or common shares. Retained earnings: cumulative net income kept for use in the company. Specific tools can be used to analyze the financial statements. Ratio analysis expresses the relationships between selected financial statement data. Use comparisons to aid in analyses: intracompany comparisons cover two or more periods for the same company, intercompany comparisons between the company and a competitor, industry average comparison based on averages for particular industries.