ECON 4 Lecture 3: Jan 15 2019
Document Summary
A snapshot of a company"s financial position at a particular point in time. Takes into account the stock (not stocks and bonds) of the resources the firm uses. Accounts for any claims on these resources by all stakeholders. The fundamental equation in accounting is given the following accounting identity, often referred to as the balance sheet equation: Resources that are expected to yield some future economic benefit by either. It is acquired in a past transaction or exchange. The value of its future benefits can be measured with a reasonable degree of precision. Company a sells ,000 of inventory to a customer that promises to pay cash within 60 days. Yes, because they have a promise (something acquired) for future payment (,000 in. Company b signs a contract to deliver ,000 of natural gas to company x every month for the next year. Although there is a delivery schedule, there has been no payment or services rendered.
