ACCT 201 Lecture 2: ACCT 201 CHAPTER 2 Lecture Notes
Document Summary
Identify the sections of a classified balance sheet: presents snapshot at a point in time, improve understanding, companies group similar assets and similar liabilities together, standard classifications. Current assets cash, debt investments, accounts receivable, notes receivable, inventory, supplies, prepaid insurance, total current assets. Long-term investments stock investments, investment in real estate. Property, plant and equipment land, equipment, less: Intangible assets patents, goodwill, customer lists, cable television finance, etc. Current liabilities notes payable, accounts payable, unearned sales revenue, salaries and wages payable, interest payable, total current liabilities. Long-term liabilities mortgage payable, notes payable, total long term liabilities. Stockholders" equity common stock, retained earning, total stockholders equity. Total liabilities and stockholders equity: current assets. Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer. Operating cycle average time takes from the purchase of inventory, to the sale of goods, and then to the collection of cash from customers.
