Business Administration 1220E Lecture Notes - Lecture 3: Operating Expense, Balance Sheet, Current Liability

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Trina Ruthes

Document Summary

Current assets- cash and other assets that are expected to be converted to cash within a year. Fixed assets- investments in property, plant and equipment. Intangible assets- non-physical asset that has a useful life of greater than one year e. g. trademarks, customer lists, motion pictures, franchise agreements, computer software etc. Current liability- the amount of money the company owes and must pay within the coming year. Long-term liability- debts due after one year from the date of the balance sheet. Equity account- the owner"s interest in the company assets. Balance sheet- presents the financial position of an enterprise as of a particular day. Income statement- measures how profitable the corporation was during a particular period of time. Prepaid expense intended to be used up in the short term, such as property or equipment rental and fire. E. g. magazine subscriptions are paid for the entire year at once but customers receive one issue per month.