MGTA02H3 : study guide
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MGTA02H3 Full Course Notes
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Lecture 5: accounting: balance sheet (page 84) Balance sheets supply detailed information about the accounting equation. They show the firm"s financial position, and its assets, liabilities and owner"s equity at a particular time. An economic snapshot, applies at one time when it was made up, financial position of a business at that moment. A look at what kind of assets we have and liabilities we have to pay and if anything is left over for owner/us: assets. List in order from ease in turning them into cash, they are liquid assets, can be converted into cash within a year. Next would be marketable securities, invested bonds in another company. Third one accounts receivable: assets- current or liquid assets. Assets that can be converted into cash in one year. Accounts receivable a bill issued to a customer and within a 30 days period they will pay you, g generate it by selling stuff.
