MGMT 30A Chapter Notes -Accounts Payable, Promissory Note, Retained Earnings

• School: UC-Irvine
• Department: Management
• Course: MGMT 30A
• Professor: Kari- Lyn Williamson

Document Summary

Ch 2: further look at financial statements: classified balance sheet classifications & sections , help determine. Groups together similar assets & liabilities using number of standard. Whether comp has enough assets to pay debts. Claims of short & long term creditors on company"s total assets. Asset, liability, stockholders" equity: current assets. Assets company expects to covert to cash or use up within 1 year or its operating cycle, whichever is longer. Operating cycle: ave time it takes to go from cash to cash in producing rev from purchasing inventory to selling it to colleting cash. Assets with long useful lives currently used in operating the business. Depreciation: prac of allocating cost of assets to number of years accumulated depreciation: total amount of depreciation company has expensed thus far in asset"s life: intangible assets. Assets that don"t have physical substance but valuable: goodwill, patents, copyrights, trademarks, give exclusive right for per of time, current liabilities.