FINA 2700 Chapter Notes - Chapter 3: Comprehensive Income, Impaired Asset, Income Statement
29 Nov 2016
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Balance sheet used to buy those assets (liabilities and equity) as of a specific date. Presents a snapshot of the firm"s assets and the source of the money that was. Book value/carrying value value of assets or liabilities shown on the. Liquid assets can be turned more easily into cash than others. Current assets are likely to be used up or turned into cash within a year. Cost method results in the asset being carried at its original cost less balance sheet accumulated depreciation booked to date, less any impairment losses accumulated to date. Depreciation is an expense that allocates the cost of the asset over its useful life. The expense for the use of intangible assets is called amortization. Goodwill is the difference between the purchase price of the acquired company and the estimated fair market value of the identifiable net assets acquired. Cash flow from assets, financing flow, and free cash flow.
