MGMT 30A Chapter Notes - Chapter 2: Working Capital, Deferral, Financial Statement

• School: UC-Irvine
• Department: Management
• Course: MGMT 30A
• Professor: Machiavelli Chao

Document Summary

Classified balance sheet = groups together similar assets and liabilities using a number of standard classifications and sections. Sto(cid:272)kholde(cid:396)s" e(cid:395)uity: help determine if company has enough assets to pay for debts & claims of short- and long-term c(cid:396)edito(cid:396)s o(cid:374) the co(cid:373)pa(cid:374)(cid:455)"s total assets. Long-term investments investments in stocks and bond of other operations that are held for more than one year long-term assets such as land or building that a company is not currently using in its operating activities long-term notes receivable. S(cid:455)ste(cid:373)icall(cid:455) assig(cid:374) po(cid:396)tio(cid:374) of asset"s cost as e(cid:454)pe(cid:374)se each (cid:455)ea(cid:396), less tha(cid:374) accumulated depreciation. Accumulated depreciation = total amount of depreciation that the company has e(cid:454)pe(cid:374)sed i(cid:374) the asset"s life. Intangible assets = assets that do not have physical substance and are very valuable: goodwill, patents, copyrights, trademarks/trade names that gives company exclusive right of use for a specified period of time.