BU127 Chapter Notes - Chapter 10: Accounts Payable, Capital Structure, Working Capital
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BU127 Full Course Notes
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Document Summary
Chapter 10 reporing and interpreing current liabiliies. Capital structure is the mixture of debt and equity that inances the short and long term operaing requirements of a company. Liabiliies are debts or obligaions arising from past transacions that will be paid with assets or services. Current liabiliies are short-term obligaions that will be paid within the normal operaing cycle or one year, whichever is longer. Liquidity is the ability to pay current obligaions. Quick raio measures the ability of a company to pay its current obligaions. Trade payables turnover raio and the average age of payables are measures of how quickly a company pays its creditors. Accrued liabiliies are expenses that have been incurred but have not been paid at the end of the accouning period. Deferred revenues are revenues that have been collected but not earned; they are liabiliies unil the goods or services are provided. A provision is a liability of uncertain iming or amount.
