BU127 – Sep 18th 2023 Statement of financial position - Its purpose is to report the financial position (amount of assets, liabilities, and sharehoolders equity) of an accounting entity at a particular point in time. Assests = Liabilities + Shareholders equity Assets – Economic resources (cash, inventory, buildings) Liabilities – Financing from creditors (amounts owed to suppliers, employees, banks) Shareholders equity – Financing from shareholders (Contributed capital, Retained earnings) Annual report breakdown/Statement of Earnings intangible asset Goodwill – recorded assets that are not physical, but give the business value - Purchase price – assets = Goodwill Market cap Ethics conduct - Ethics are standards of conduct for judging right from wrong, honest from dishonest behavior, and fair from unfair practices International misreporting of financial statements is both unethical and illegal Many situations are less clear-cut and require that individuals weigh one moreal principle (eg. Honesty) against another (e.g. loyalty to a friend)
