BUSACC 0030 Lecture Notes - Lecture 9: Operating Lease, Income Tax, Accounts Payable
Document Summary
Material covered: chapter 9: reporting and interpreting liabilities. Understanding the business: the acquisition of assets is financed from two sources: a. i. Equity funds from owners: debt is considered riskier than equity b. i. Liquidity: liquidity is the ability to pay back current obligations, working capital = (current assets current liabilities, working capital is a margin of safety that ensures a company can meet its short- term obligations. 6:30pm 9:00pm: notes payable obligations due supported by a formal written contract, deferred revenues obligations arising when cash is received prior to the related revenue being earned. Payroll taxes: gross pay net pay a. i. Notes payable: a note payable specifies an annual interest rate associated with the borrowing a. i. To the borrower, interest is an expense b. Interest = principle * interest rate * time: example on slide 9-11. In the case of ifrs, the actual refinancing must take place by the balance sheet date.
