BSM 100 Lecture Notes - Lecture 10: Profit (Accounting), Earnings Before Interest And Taxes, Accounts Payable
17 Jan 2017
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Financial accounting: for those on the outside, looking in. Financial accounting: the branch of accounting that addresses the needs of external stakeholders; includes financial statements to provide broad information. Corporations with publicly held stock must publish annual reports with all statements. Assets that can be quickly converted into cash. Assets that will be converted into cash over a within the year. Inventory finished goods that will be sold. Liabilities: what an organization owes to others or a source of funds. Short term bank loans (duration of 1 year or. Long term bank loans (10 year, 20 year less than 1 year) Accounts payable money owed be a loans) company to its creditors. Shareholders" equity (another section of liabilities: common shares/stock, retained earnings (money left over after having paid all expenses; profits of the business) belong to shareholders. Part of liabilities because it is money that the company must pay to the shareholders.
