Balance sheet/statement of Financial Position Flashcards
Current Assets includes
1-Cash
2- AR (any allowance for credit losses is netted here) include Trade accounts
3-Temporary Investments (trading securities) (short term investment)
4-Inventory (add the unsold goods here after % is calculated against cost of inventory)
5-PPD Exp
6-Net working capital(current asset less current liability)
7- fixed assets
8-CIP in excess of billing
Retained Earnings is included in
Equity section of balance sheet
What is included in Retained earnings calculation
1-Unappropriated & Appropriated
2-any R.E restricted for Note Payable
3-Taxes needs to be calculated when ppd taxes exist (take the Net Income x % of taxes and reduce that $ from net income.
Current Liabilities include
Within one year or less
1- Account Payable
2- Notes Payable
3- Dividend Payable
4- Income Tax Payable
5- Accrued Expenses
6-Unearned Revenue
7- current portion of long term debt
8- other short term debt
Balance sheet is also called the
Statement of financial position
Assets= Liabilities + Equity
Assets= capital structure (liabilities + equity)
Assets = D.I.C.E
What are assets
D- derived from past events
I- include probable future benefits
C- controlled by an entity
E- economic resources
Equity value
Book value of the equity does not equal Fair market value of the equity
Equity something’s called stock holders equity is made up off -
1-Net assets (assets - liabilities)
2-represents ownership interest
A.preferred equity- no voting and gets dividends before common stock holders, also if liquidating they get $ first
B. Common equity
Deferred Tax Liabilities are classier as current liabilities or Long term Liabilities?
Always classified as Long Term Liabilities
Investment in trading debt securities(temporary investments) is part of where in the balance sheet ?
Current Assets
