1 / 11

The Balance Sheet

The Balance Sheet. The Balance Sheet is:. a financial statement showing the financial position of a person, business, or other organization on a specific date; usually prepared at the end of the accounting/fiscal period. Example:. Company Name. Financial Statement Name. Date. (own).

ull
Download Presentation

The Balance Sheet

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Balance Sheet

  2. The Balance Sheet is: • a financial statement showing the financial position of a person, business, or other organization on a specific date; usually prepared at the end of the accounting/fiscal period

  3. Example: Company Name Financial Statement Name Date (own) (owned) Listed in order of liquidity (from cash to things that take longer to sell) Alpha Order Alpha Order

  4. Important Features: • A=L+OE: • set up in the form of the accounting equation where assets are listed on the left side and liabilities and owner’s equity appear on the right side (account form) • ASSETS: • things that you own that have a dollar value Accounts Receivable: --money owed by customers (debtors)   Accounts Payable: --money owed by the business (creditors)

  5. LIABILITIES: • debts owed • OWNER’S EQUITY • owner investment (capital) or net worth; assets – liabilities • WHO? the name of the business • WHAT? the name of the financial statement • WHEN? the date on which the financial position is determined

  6. LIQUIDITY: • the order in which assets are converted into cash (ie. cash us usually considered the most liquid and is listed first) • CLAIMS AGAINST ASSETS: • the order in which assets are sold when a business closes operations in order to pay liabilities; bank is paid first, then accounts payable, and the owner receives any remaining money; however, the owner also has to accept any losses that might result from selling off the assets

  7. FULL DISCLOSURE: • the financial details of any item are fully disclosed on a balance sheet; record assets at cost value • TOTALS: • the two final totals, one on each side of the balance sheet, should equal and are recorded on the same line and underlined with a double line

  8. Sample Balance Sheet • Prepare a balance sheet for pacific trucking as at June 30, using the following information Accounts Payable – Dini Bros. $1,516 Accounts Receivable – W. Caruso 150 Equipment 22,174 Bank Loan 18,000 Cash 3,265 Supplies 2,465 Accounts Payable – Packham Supply 3,946 Trucks 55,075 Accounts Receivable – R. Van Loon 620 B. Rissien, Capital $$$$$$

  9. Homework: • Answer Exercise # 1, 2, 3 p. 28-29 (t), p. 9, 10 (w)****pick 2 of 3****

More Related