BUS 020 Lecture Notes - Lecture 4: Accounts Receivable, Current Liability, Property Insurance

• School: UC Riverside
• Department: Business
• Course: BUS 020
• Professor: Samuelson Bruce

Document Summary

On april 1, 2014, briggs corp. purchases a 24 month property insurance policy for ,000. Assume that briggs prepares adjustments only once a year on. Objective of financial reporting: provide useful information to financial decisions. Chapter 2: classified balance sheets: balance sheet: assets, liabilities, and equity, income statement: revenues and expenses, statement of cash flows: receipts and payments from operating, investing, and financing activities, notes: accounting policies. Classified balance sheet: separate assets and liabilities into categories, assets: current assets; property, plant& equipment; intangible assets; investments, liabilities: current liabilities; long term liabilities, equity: contributed capital; retained earnings. Items become cash or consumed within one year: cash, marketable securities (stock investments, accounts receivable, merchandise inventory, prepaid insurance, store supplies, quick assets are convertible into cash within 30 days a subset of current assets. Noncurrent assets (not a classification: property, plant, and equipment: physical assets used to operate a business: land, building, machine, truck.