Management and Organizational Studies 1023A/B Lecture Notes - Lecture 3: Asset, Promissory Note, Deferral

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Christina Maco

Document Summary

A classified balance sheet generally contains the following standard classifications: Depreciation reduction in the value of an asset with the passage of time, due to wear and tear cost of long-lived assets with indefinite lives is not depreciated aka land. Accumulated depreciation account shows total amount of depreciation taken to date. Difference between cost of asset and its accumulated depreciation is the carrying amount of the asset. Shareholders" equity share capital investment of cash (or other assets) in the business by shareholders in exchange for preferred/common shares retained earnings: earnings kept for use in business. To use financial statements to evaluate an organization"s performance and financial position. To have a means of comparative analysis across time in terms of: intracompany basis (w/in company, intercompany basis (between companies, industry averages (for that particular industry) Financial ratio analysis involved calculating and analysis ratios that use data from financial statements. Analysing on sales and cogs: focus on gross profit.