BUSI 1004 Study Guide - Comprehensive Final Exam Guide - Retained Earnings, Income Statement, Balance Sheet
20 Nov 2018
School
Department
Course
Professor
Document Summary
Chapter 1-introduction to financial accounting and financial statements. Assets (economic resources) = liabilities (creditor"s claims on assets) + shareholders"s equity (shareholder"s claims on assets. Ex: you have ,000 of assets and you have ,000 of liabilities, therefore, you have ,000 worth of. Corporation: cash, marketable securities, accounts receivable (30 days need to be paid), inventory(buy inventory and sell inventory. For example, when we take out an insurance policy, we normally pay the annual premium the day the policy takes effect. Because the policy has not yet expired, the cost of the policy will be classified as a prepaid expense. Accumulated depreciation account is normally shown directly below the asset account and reduces of the value of the asset account. Intangible assets are assets that cannot be seen, touched or physically measured. Say for example the company is being sued and this is the estimate of how much they are going to be sued (long-term liabilities)
