ACG-2021 Lecture Notes - Lecture 20: Promissory Note, Accounts Payable, Current Liability
Document Summary
Balance sheet provides a snapshot of a company"s nancial position at a given point in time. Classi ed balance sheet improves users" understanding of a company"s nancial position by grouping together similar assets and similar liabilities using standard classi cations . Whether the company has enough assets to pay its debts as they come due. The claims of short- and long-term creditors on the company"s total assets. Operating cycle- is the average time required to go from cash to cash in producing revenue (to purchase inventory, sell it, then collect cash from customers). 2. investments in stocks and bonds of other corporations that are held for more than one year long-term assets such as land or buildings that a company is not currently using in its operating activities: long-term notes receivable. Property, plant, and equipment - assets with with relatively long useful lives that are currently used in operating the business. Includes land, buildings, equipment, delivery vehicles, and furniture.