FIN 300 Study Guide - Final Guide: Accrued Interest, Investment, Effective Interest Rate

• School: Ryerson University
• Department: Finance
• Course: FIN 300
• Professor: Sergiy Rakhmayil

Document Summary

Statement of financial position (balance sheet): a list of a fi(cid:396)(cid:373)"s assets, lia(cid:271)ilities a(cid:374)d e(cid:395)uit(cid:455) that p(cid:396)o(cid:448)ides a s(cid:374)apshot of the fi(cid:396)(cid:373)"s fi(cid:374)a(cid:374)(cid:272)ial positio(cid:374) at a gi(cid:448)e(cid:374) poi(cid:374)t i(cid:374) ti(cid:373)e. Assets: the cash, inventory, property, plant and equipment, and other investments a company has made. Sha(cid:396)eholde(cid:396)s" e(cid:395)uity: a(cid:374) a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g (cid:373)easu(cid:396)e of a fi(cid:396)(cid:373)"s (cid:374)et (cid:449)o(cid:396)th that (cid:396)ep(cid:396)ese(cid:374)ts the diffe(cid:396)e(cid:374)(cid:272)e (cid:271)et(cid:449)ee(cid:374) the fi(cid:396)(cid:373)"s assets and its liabilities. Common stock: the amount that shareholders have directly invested in the firm through purchasing stock from the company. The statement of financial position identity: assets = liabilities + shareholders equity. Assets: current assets: cash or assets that could be converted into cash within one year. Marketable securities: short-term, low risk investments that can be easily sold and converted to cash. Accounts receivable: amounts owed to a firm by customers who have purchased goods or services on credit. Inventories: a firms raw materials as well as its work in progress and finished goods.