CP 2 modul (Balance sheet) Flashcards
Balance sheet
document that presents the assets of the enterprise, sources of financing these assets- liabilities& equity
Intangible assets
Long term assets
Property, plant and equipment
Long term assets
Long term receivables
Long term assets
Long term investments
Long term assets
goodwill(reputation, brand name, customer base, and other intangible assets that contribute to its overall value)
Long term assets
Long term accruals- accrued revenue( company gets cash now but customers gets the product/service later)
Long term assets
Shareholders equity
equity
Retained earnings(portion of a company’s profits that are not distributed to shareholders as dividends but instead are retained by the company for reinvestment or future use)
equity
Net income/ loss
equity
Inventories
Short term assets
Short term receivables(money owed to a company)
Short term assets
Short term investments( including cash)
Short term assets
Short term accruals (deferred tax asset)
Short term assets
Long term liabilities
Liabilities
Short term liabilities
Liabilities
accruals (deferred revenue)
Liabilities
assets used in a period longer than 1 operating cycle or with a useful life of more than one year
non-current assets
Include money due to the company (repayment date of which is longer than 1 year)
Long term receivables
Share capital, also known as shareholder’s equity or contributed capital, is the portion of a company’s financial resources that has been contributed by its shareholders in exchange for ownership shares.
Share capital ( also shareholder’s equity or contributed capital)
shares of a company’s own stock that have been repurchased from shareholders and held by the company itself
Treasury shares
reserve capital
portion of a company’s equity that is set aside for specific purposes, such as financing future growth, funding long-term projects, or absorbing potential losses.
revaluation reserve
Arising as a result of revaluation of fixed assets and long term investments (Imagine a company owns a building that it purchased for $100,000 five years ago. Over time, the value of real estate in the area has increased. Now, the building is worth $150,000.)
Provisions/ reserves for liabilities
Are certain or highly probable future liabilities, the amount of which can be reliably estimated
