ACCT 001 Lecture Notes - Lecture 4: Financial Statement, Myofascial Trigger Point, Current Liability

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 001
• Professor: cooper

Document Summary

Reasons for the distinction between current and non-current assets and liabilities are to help the financial statement user assess short-term financial position. Account payable (ap) are dollar amounts owed to others for goods, supplies and services purchased on an open account. Notes payable (np) evidenced by a promissory note or bill of exchange (e. g. credit purchase of equipment: the interest-bearing characteristics are the written documentation that distinguish notes payable from accounts payable. The residual interest in the assets of the entity after deducting all its liabilities. When a company earns a profit, that profit can be distributed to shareholders as dividends or kept in the business to grow the business. Retained profit account is the link between the balance sheet and income statement. Income statement accounts are temporary account: balance sheet accounts are permanent accounts. Income statement accounts are closed" and their balances transferred to the retained profits account (on the balance sheet) at the end of each accounting period.