ADMN 1021H Lecture 2: Accounting Lecture 2
26 Jan 2017
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More on financial statements: identify the sections of a classified statement. 2. identify and calculate ratios for analyzing a companys liquidity, solvency, and profitability. 3. describe the framework for the preparation and presentation of financial statements. It shows the assets (a), liabilities (l) and shareholders equity (e) at a specific point in time. Classified statement of financial position (important to know specific order) Current assets (expected to be converted to cash within 12 months. Property, plant and equipment (when companies purchase an asset to use) Current liablities (liabilities that are needed to be paid in 12 months or less. Share capital (funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares) Allocation of the cost of property, plant and equipment over their estimated useful lives. Always on income statement along with amortization. Accumalted depreciation is a balance sheet account. Paying taxes on equipment price/years of benefit and operation (macbook laptop /5)
