BUSS1030 Lecture Notes - Lecture 6: Financial Statement, Market Liquidity, Income Statement

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

It represents a summary of information provided in the accounts and is effectively a listing of balances in all of the detailed accounts. It is called a balance sheet because it balances the accounting equation a = l + oe. Cash equivalence cheques and credit cars. Assets can be owned by bank or by the owner (hence the reason for 2 claims to assets below) Aasb framework definition: (cid:862)a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits(cid:863) But there is no certainty on timing or amount. Opening balance + profit drawings = closing balance. Reserves represent ownership interests in the assets, not the assets themselves. Reserves are not separate deposits of cash available for other purposes. If land increases in value from 50,000 to 90,000 the journal entry is.