ADM 1340 Lecture Notes - Lecture 3: Book Value, Retained Earnings, Financial Statement

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

Presents a snapshot of the company"s financial position (assets, liabilities, shareholders equity) at a point in time. Similar types of assets and liabilities are grouped together. Liquidity order: from most to least liquid (north american companies) Classified statement financial position generally contains the following standard classifications. From which future economic benefits are expected to flow to the company. Current - expected to be converted into cash, sold, or used up within one year of the company"s financial statement date or its operating cycle, whichever is longer. Cash : cash in hand and cash in bank or other financial institutions. Short-term investments : investments in debt securities or equity securities that are held in hope of generating interest income or gains from resale. Receivables : owed to the company by customers or others. Prepaid expenses : represent the cost of things like rent and insurance paid in advance of use (not expenses)