COMMERCE 1AA3 Study Guide - Midterm Guide: Common Stock, Promissory Note, Cash Flow Statement
23 Oct 2015
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Characteristics of assets and liabilities: assets: Current assets: cash and cash equivalents, short-term investments, accounts and notes receivable, inventory (sell house, prepaid expenses. Long-term assets: property and equipment, land, buildings(house, computers, equipment. Current liabilities: current maturities of long-term debt, accounts payable c) Income taxes payable: accrued expenses payable long-term liabilities, long-term notes payable, bonds payable. Definition and components of shareholders" equity claims of owners on business: definition: represents stockholders" ownership of the business assets. Represents residual interest in assets after all liabilities are settled: components, common stock, contributed surplus, retained earnings d) Classification of items such as income tax expense, income tax payable, prepaid expenses, unearned revenues, etc. 2: prepaid expense assets, unearned revenue . Definition of expenses and relation to elements of financial statements eg. reduce retained earnings: definition of expenses: the cost required for something; the money spent on something.
