Académique Documents
Professionnel Documents
Culture Documents
Working Capital
Financing
Assets
(Balance Sheet)
Operating
(Balance Sheet)
Net Income
(Income Statement)
Obtaining Financing
FINANCING
(Obligations)
Resources
Sources of Resources
Claims on Resources
EQUITIES
(Owners equity and
Liabilities)
ASSETS
A Companys Assets
No
Yes
Can the resources or rights
generate a future economic
benefit?
No
Yes
It is an ASSET.
Introduction to Financial Accounting
Universitat Pompeu Fabra
It is NOT an Asset.
A Companys Liabilities
Has the company received
an asset item or external
services?
Yes
Yes
No
Does the company have to
pay for them in the future?
No
It is NOT a liability.
Yes
It is a liability.
Introduction to Financial Accounting
Universitat Pompeu Fabra
Equities
Liabilities
Owners
Equity
Assets
Equities
Liabilities
Assets
Owners Equity
(Net worth)
INVESTING
How are the funds
used?
Resources
Assets
FINANCING
Where do the funds
come from?
Sources of Resources
Equities
(Liabilities and Owners
Equity)
Equities
Noncurrent
Low (long-term)
Liquidity
Maturity
Current
High (short-term)
Equities
Noncurrent Assets
Intangible Assets
Tangible Assets
Financial Investments (longterm)
Propery Investments
Current Assets
Inventories
Accounts receivable
Cash and Cash Equivalents
Introduction to Financial Accounting
Universitat Pompeu Fabra
Owners Equity
Long-term liabilities
Short-term liabilities
10
El Balance de Situacin
ACTIVO
FONDOS PROPIOS Y
PASIVO
No corriente
Intangible
Material
Inversiones inmobiliarias
Financiero
Corriente
Existencias
Realizable
Disponible
Introduction to Financial Accounting
Universitat Pompeu Fabra
Neto o No Exigible
11
Noncurrent Assets
Current Assets
Resources expected to be
turned into cash, sold or
consumed within less than one
year from the date of the
balance sheet.
12
Rights, Patents
Land
Buildings
Equipment
Furniture
Long-term investment in shares, bonds
Introduction to Financial Accounting
Universitat Pompeu Fabra
13
Merchandise
Raw materials
Unfinished goods
Finished goods
14
15
Long-term Liabilities
Short-term Liabilities
16
Liabilities - Examples
Accounts payable to
Suppliers, Creditors
Notes payable
Unearned revenues
Expenses payable
Bonds payable
17
Liabilities
At Repayment Price
Financial Assets
At Market Value
18
Working Capital
The working capital is a measure of the liquidity of the company:
19
Liabilities
Fixed
Assets
Equity
Current
Assets
Assets
Working
capital
LT
Debt
Equity
Current
Assets
ST
Debt
ST
Debt
Introduction to Financial Accounting
Universitat Pompeu Fabra
Fixed
Assets
Liabilities
20
Working
capital
Negative
Assets
Liabilities
Fixed
Assets
Equity
Current
Assets
Introduction to Financial Accounting
Universitat Pompeu Fabra
S.T
Debt
21