ACCO 230 Lecture Notes - Lecture 2: Deferral, Balance Sheet, Historical Cost
Document Summary
If a business is not expected to continue, items on the balance sheet should be reported as though they are to be liquidated (assets sold and debts paid) Balance sheet items: assets resources an entity can use for operation in the future; value reported using the judgment and past experience of managers. Current assets those assets to be used or turned into cash within one year. Non-current (long term) assets those to be used or turned into cash in more than one year. Examples of assets are cash, short term investments, accounts receivable, inventories, prepaid expenses. Examples of assets are accounts payable, accrued expenses payable, notes payable: stockholders" equity financing provided by owners and business operations. Contributed capital cash provided by owners for which they receive a share of stock in the company. Debit left side of an account assets have a debit balance and increase on the left side.