ACTG 210 Lecture Notes - Lecture 2: Net Income, Shares Outstanding, Internal Revenue Service
Document Summary
L o 1 identify the sections of a classified balance sheet. L o 2 use ratios to evaluate a company"s profitability, liquidity, and solvency. Identify the sections of a classified balance sheet. Nature of the classified balance sheet: presents a snapshot at a point in time, to improve understanding, companies group similar assets and similar liabilities together. Companies list current asset accounts in the order they expect to convert them into cash. Long-term investments: 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. Intangible assets: assets that do not have physical substance, includes goodwill, patents, copyrights, and trademarks or trade names. Sometimes intangible assets are reported under a broader heading called other assets. Patents and copyrights are: current assets, intangible assets, long-term investments, property, plant, and equipment, answer: intangible assets.
