FAISAL SARWAR

 Assets
 Economic resources that are expected to produce
economic benefits
 Liabilities
 Obligation the company has to outside parties
 Shareholder equity
 Value of a business to its owner after all
obligations
 Account format
 Report format
 Current assets
 May be converted into cash. Sold or consumed
within a year or less
 Long term assets
 Current liabilities
 Long term debt
 Share holder equity
 Held to maturity securities
 Reported at cost
 Held till maturity
 Unrealized gain / loss not reported

 Trading securities
 Intention to trade them in near term for profit
 Reported on fair value
 Unrealized gain/loss reported on income statement

 Available for sale securities

 Reported on fair value
 Unrealized gain/loss reported on other income as part
of shareholder equity
 Total legal capital of the corporation
 Par value + paid in capital
 PAR VALUE
 Set by management

 LEGAL CAPITAL OF CORPORATION

 par value per share multiplied by total shares
 ADDITIONAL PAID IN CAPITAL
 Difference between actual value the company
sold the shares & their par value