ACCTNG 2400 1st Edition Lecture 7 Outline of Last Lecture I. AccountsII. Debit and CreditIII. Journal Entries and ledger accounts (summarizing) and T-accountOutline of Current Lecture I. Current vs. noncurrent II. Classified balance sheetIII. Trial balanceCurrent LectureI. Current vs. noncurrenta. Current assets – assets that will be used up or converted into cash within 12 months of the balance sheetb. Current liabilities – debts and obligations that will be paid, settles, or fulfilled within 12 months of the balance sheetc. Noncurrent (long-term) – assets and liabilities that do not meet the definition of current (wont be used up within 1 year).II. Classified balance sheet – a balance sheet that shows a subtotal for current assets and current liabilities.a. This balance sheet has separate totals for current and noncurrent assets and liabilities instead of putting them all in one big total.III. Trial balance – an internal report that lists all of the accounts with their balances to provide a check on the equality of the debits and credits; best way to ensure your accounts are in balance.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
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