CCT321H5 Study Guide - Midterm Guide: International Financial Reporting Standards, Cash Flow Statement, Asset

• School: UTM
• Department: Communication, Culture and Technology
• Course: CCT321H5
• Professor: Radha Maharaj

Document Summary

State(cid:373)e(cid:374)t of fi(cid:374)a(cid:374)(cid:272)ial positio(cid:374) that sho(cid:449)s the (cid:271)ook (cid:448)alue of the fi(cid:396)(cid:373)"s assets, lia(cid:271)ilities a(cid:374)d equity as of a specific date. Note: if the balance sheet of a firm indicates that total assets exceeds current liabilities + sha(cid:396)eholde(cid:396)s" e(cid:395)uit(cid:455), then the firm has long-term debt. Book value = price you pay for an asset; this never changes. Market value = the current price at which you can sell an asset in the market. Current assets: assets that are expected to be converted to cash within a year. Cash and cash equivalents, accounts receivable, prepaid expenses for future services that will be used within a year. Property, plant and equipment, investment property, such as real estate held for investment purposes, intangible assets. Tangible assets: have physical presence (ex. equipment) Intangible assets: long-lived assets that do not have physical substance (ex. patents, trademarks, etc. ) Liquidity: how quickly/easily an asset can be converted into cash.