ADMN 1021H Chapter Notes - Chapter 2: Deferral, Financial Statement, Accounts Receivable

• School: Trent University
• Department: Business Administration
• Course: ADMN 1021H
• Professor: Santoso Sugiano

Document Summary

Chapter 2: a further look at financial statements. L-o 1: identify the sections of a classified statement of financial position. Operating cycle average period of time it takes for a business to pay cash to obtain products or services and then receive cash from customers for these products or services. Current assets assets that are expected to be converted into cash, sold, or used up within one year of the company"s financial statement date. Common types of current assets include: cash, held for trading investments, accounts receivable, notes receivable, including loans receivable, inventory, supplies, prepaid expenses. Held for trading investments investments in debt securities or equity securities of other companies that are bought with the intention of selling them after a short period of time in order to earn income form their price fluctuations. Accounts receivable amounts owed by customers who purchased products or services on credit (on account).