Term
| how are items listed on the balance sheet? |
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Definition
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Definition
| all depreciation since date of purchase |
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Definition
| the amount that the company can still depreciate the asset |
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| why would land be kept seperate from the rest of PPE on balance sheet? |
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Definition
| because it cant really depreciate |
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Definition
| patents, trademarks and copyrights that have value but no physical presence. For example, for disney, it can be considered things like MIckey Mouse, Goofy, etc. |
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Term
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Definition
| Essentially the value of brand loyalty. Companies can only record this when buying other companies, not from their own business practice. For example, when disney bought marvel, they bought it for almost double the stockholders equity, the difference being the goodwill |
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Term
| current portion of borrowings |
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Definition
| the portion of long term debt due within the next 12 months. For example, if a company has an installment loan payable, where they must pay a bit monthly, the total of the payments for the next 12 months are considered current, whereas anything after that is noncurrent |
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| unearned royalties and other advances |
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Definition
| prepaid amounts from advertising subscribing (such as subscribers to mailing lists and such) and advance theme park ticket sales. |
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Term
| deferred income tax liabilities |
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Definition
| come from tax rules allowing companies to earn income now, and pay taxes later. Companies must record these as liabilities even if not due for years |
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Term
| commitments and contingencies |
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Definition
| kinda safety money for future events such as a lawsuit |
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| the person borrowing money and records as a liability of bonds payable |
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| the person loaning the money. Records it is as an asset of bonds recievable |
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Definition
| current assets divided by current liabilities, measures the ability to pay current liabilities as they come due. Measure of short term liquidity. Healthy is essentially a 1 or higher |
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Definition
| total liabilities divided by total assets- indicated the percentage of the company financed with debt. Measures solvency. Lower is generally better. The percentage shows how much of the assets is financed with debt. |
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