1. Conceptual Overview of Liabilities Liabilities are probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services to other entities in the future as a result of past transactions or events
Intermediate Accounting 8 Property, Plant And Equipment I. Classification as property, plant and equipment To be included in the property, plant, and equipment category, an asset must have three characteristics:
1. Accounting for cash Intermediate Accounting 6 Cash and Receivables Cash is the resources on hand to meet planned expenditures and emergency situations
1. Concepts of income Intermediate Accounting 4 The Income Statement and Income Recognition Capital Maintenance Concept Under this concept, corporate income for a period of time is the amount that may be paid to stockholders during that period and still enable the corporation to be as well off at the end of the period as it was at the beginning
1. FASB conceptual framework FASB was given two charges: To develop a conceptual framework ofaccounting theory. To establish standards (GAAP) for financialaccounting practices
1. Basic Earnings Per Share Net Income – Preferred Dividends Weighted Average Number of Common Shares Outstanding Intermediate Accounting 14 Earnings Per Share And Retained Earnings
