BUSS1030 Study Guide - Final Guide: Current Liability, Accounts Payable, Current Asset
Document Summary
& the business control (others own, but i control e. g. lease, if used- expense) & be consumed (prepaid, supplies) or converted into cash (inventory, receivable) within the 12 months or operating cycle. ( -cash on hand, - cheque) cash at bank and cash equivalent. & to generate wealth, rather than for resale. & out the next 12 months or operating cycle. & would depreciation bill receivable (pay interest, give extension)-loan repayment from others. Equipment, plant, building, delivery vehicles, freehold premises , land (not depreciate) less accumulated depreciation-equipment/vehicles (negative asset- credit ) Intangible assets (goodwill, brand, patent : liability. & a present obligation of the entity arising from past events. & result in an outflow from the entity of resources embodying economic benefits. Current liabilities : amounts due for repayment in cash(payable), good service(unearned) to outside parties within 12 months or one operating cycle a) settledintheentity"snormaloperatingcycle; (operating activity) b) heldprimarilyforthepurposeofbeingtraded c) theentitydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleast twelvemonthsafterthereportingdate.
