ACCT 3001 Chapter : Chapter 5 Course Notes
Document Summary
Chapter 5 the balance sheet: usefulness, limitations, classification, additional information reported, techniques of disclosure. Note: our coverage will omit the text"s coverage of the. Three general classifications: assets, liabilities, and stockholders" equity. Assets: current assets, long-term investments, property, plant and equipment, intangible assets, other assets. Liabilities and owners" equity: current liabilities, long-term debt, owners" (stockholders") equity. Cash and other assets a company expects to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer. Cash: generally any monies available on demand. , cash equivalents are short-term highly liquid investments that will mature within three months or less, any restrictions or commitments must be disclosed. Claims held against customers and others for money, goods, or services: accounts receivable oral promises, notes receivable written promises- interest rate associated with it, and a due date. Major categories of receivables should be shown separately in the balance sheet or the related notes.
