BUS 082 Lecture Notes - Lecture 7: Unsecured Debt, Calendar Year, Commercial Paper

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Tootle

Document Summary

Fiscal year: company chooses 12 month period. Calendar year: regular january to december year. 2 years on balance sheet, 3 years on income statements. Companies must value assets at fair or market value, as opposed to cost. Good when value going up > assets up. Bad when value going down > assets down. Market says house worth 700k, loan stays same (ratio 1. 47) Market goes down, says house worth 350k, loan 475k (ratio . 74) Companies must mark these assets down so ratios are up to date. Changing value of money and opportunity costs. Expensive if you make a mistake, high interest rates, major debt. The value of money is constantly changing. Managing your money is worth your time. Least payback (low risk) to biggest payback (high risk) Keep as cash, bank account, cd, bonds, stocks (safe), stocks (risky) Small sacrifices in life can produce big payoffs. Opportunity costs: the cost of something in terms of what was given up.