Feb 7 - Management Lecture
- One way to determine “wealth” or “financial standing” is to consider:
What possessions do I own?
What is the value of my property?
How much “stuff” have I got?
Balance sheet: Shows the quantity (value) of your material possessions
- Balance Sheet is like a snap shot.
Shows the possessions of business:
Balance Sheet shows their value.
- Balance sheet shows all the things that a business owns
- Through the liabilities and equity- shows if its bought by taking out a loan or by selling things
- Balance sheet shows what you got, and where you got the money to pay for these things
- Current asset- hope to turn into cash in under a year
- Current liability- must pay in under a year
- Overdraft is a synonym for line of credit
- Liquidity- the ease and speed with whi