Business Administration 1220E Chapter Notes - Chapter 1: Balance Sheet, Current Liability, Deferral

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Barbara Bruce

Document Summary

Balance sheet: records the assets and liabilities of a company on a given date. It is a snapshot into a firm"s financial condition on a given day (usually the fiscal quarters) the assets and liabilities are always in balance. The account form always has assets on left, liabilities and stockholders equity on right. The total liabilities and shareholders" equity are then added together. The size and value of a company is often measured in terms of its assets (x5) Current assets: items that are convertible into cash within a year *listed in order of liquidity (ease of conversion into cash) *categories are listed in order. Marketable securities (temporary cash surpluses that are in the form of short term interest earning investments) *don"t forget to add market value in brackets. Involved investments in common or preferred stock at another corporation, can be easily sold.