BUS 082 Lecture Notes - Lecture 30: Income Statement, Yulia Tymoshenko Bloc, Contingent Liability

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

Document Summary

Billabong used to be very profitable, not anymore. Expanded too quickly (pieface) incurred huge debts. Becoming better over a billion debt 2011, now 500 million. Statement of financial position balance sheet. Gives good indication of how the company is doing. Consolidated combined, has other companies, subsidiaries, branches. Bad to have a lot of debt because of interest. Vendor enforced/sale bank is selling house to pay debt. Income statement always for the year. E. g. big building in city, the business doesn"t own the building, will just lease. Owner is responsible for damages etc. transfers risk to owner. Credit cards considered as cash, (cash equivalent), Asset such as machine or supplies, not owned by business, business is one entity, doesn"t have physical form (like human), external claim (banks require security for a loan), internal claim (if business closes down, money goes to shareholders) Past e. g. already borrowed so recorded, normal. Celebrities suing gossip magazines, magazine has a liability (not happened byut.