ACCT 201 1st Edition Lecture 6 Outline of Last Lecture I Continued description of Balance Sheet Outline of Current Lecture II Property Plant and Equipment P P E III Accumulated Depreciation IV Current Ratio Current Lecture Current Assets Supplies Prepaid insurance rent etc Anything prepaid is a current asset Property Plant and Equipment P P E in this category you list all of your expenses Accumulated Depreciation shows the total amount of depreciation that the company has expensed thus far in the asset s life Displayed as a negative value often in parentheses Cost of Goods Sold COGS where companies keep track of all various types of expenses such as selling expenses marketing expenses administrative expenses interest expenses and income taxes Current RatioLiquidity ratios measure the short term ability of the company to pay its maturing obligations and meet unexpected needs for cash One liquidity ratio is the current ratio You can find the current ratio by dividing current assets by current liabilities and is rounded to one decimal The professor doesn t cover much else and for the rest of the class she goes over how to do the online homework These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Remember that the liability buzzword is payable
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