ACCTG 202- Midterm Exam Guide - Comprehensive Notes for the exam ( 21 pages long!)
Document Summary
Assets have value to it (what you buy): items we own. Liabilities is how you acquired it, the mortgage or debt. Equity is the ownership of the asset. Current assets: cash, ops its, air, supplies, p/passep- converted into cash within 1 year. Accounting cycle: how long is it gonna take me to make, sell, and earn revenue for a product. Opposite of current is long term assets: that we are not going to convert to cash. Xed assets: property, plants, equipment, automobile, machinery- to operate businesses. Intangible asset: assets we cant take with us but they are worth a lot of money. An example of intangible asset is a trademark, copyrights, Two different types of liabilities: current and longterm. Current liabilities; has to be paid back within a year or an accounting cycle. Current liabilities: utilities, wages payable, salaries payable, taxes, sales tax, accounts payable, ca taxes, materials, shipping.
