ACCT 201 1st Edition Lecture 6Outline of Last Lecture I. Continued description of Balance SheetOutline of Current Lecture II. Property, Plant, and Equipment (P,P,E)III. Accumulated DepreciationIV. Current RatioCurrent LectureCurrent AssetsSuppliesPrepaid _____ (insurance, rent, etc.)--Anything prepaid is a current assetProperty, Plant, and Equipment (P,P,E)- in this category you list all of your expensesAccumulated 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 incometaxes.Current Ratio-Liquidity 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
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