Business Administration 2257 Chapter Notes - Chapter 2: Conceptual Framework, Financial Statement, Current Liability

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: J S

Document Summary

Chapter 2 a further look at financial statements. The classified statement of financial position (balance sheet) Using the statement of financial position (balance sheet) The classified statement of financial position (balance sheet: assets. The resources that a company owns or controls that will provide future economic benefits. Common types of current assets: cash, trading investments, debt securities (bonds in another company) or equity securities (shares in another company, accounts receivable, amounts owed by customers who purchased on credit, notes receivable. Including loans receivable: amounts owed by customers supported by a written promise to pay, merchandise inventory, supplies, prepaid expenses. Operating cycle is time it takes business to pay cash for supplies, and then sell their products or services and collect cash. Non-current assets: assets that are not expected to be converted into cash, sold, or used up by the business within one year of the statement date or its operating cycle.