1. Accounting and the Adjusting Process
In order to get a more clear, complete and fair picture of the balance sheet, apart from reviewing the definitions given by the experts in this field, we would need to consider as many sides and issues of the subject as possible. Being objective we should have a look at the etymology of the word balance, the history of this document, its theoretical essence and the basic concepts of accounting implied in it, its forms in the accounting practise. In our attempt however not to become over-objective or scholastic, we should also review the aims and purposes of the balance sheet and the extent to which they are fulfilled, the users of this financial statement and their contradictory needs, the negative aspects and restrictions of the balance sheet, and finally the trends of its further development. In short, we have to go further into the matter. The history of the so called financial statements, and the balance sheet among them, can be traced back to Renaissance Italy, where along with the double - entry book - keeping they first evoked to respond to the growing more and more complex needs of the accounting connected with the economic development of the society at that period (expansion of trade activities, development of banking, etc.) and with the transition from the owner - manager model towards limited companies or the breakdown of ownership from control. Obviously these historical events called for the development of new methods and new documents, reflecting the changes. Naturally the word balance itself has also an Italian origin (bilan, bilanz) though it is formed up of two latin words: bi - double and lanx - scales. Even from here it becomes obvious that the balance sheet is a sheet or summary of two different aspects of one and the same thing: an entity's financial position. Further to this aspect, we can take a look at the definition of the balance sheet given by John Arnold, Tony Hope and Alan Southworth: The balance sheet is the most inituitive and easily understood document of accounting.
A) I think this amount should be included on the balance sheet of the business since there still is a chance that they amount will be paid. If there will be no chance of that amount to be paid then it shouldn't be on the balance sheet but otherwise yes it should. ... A) The buyer and accountant should definitely not accept your balance sheet from six months ago because a lot would have changed within then. ... This person should make a new balance sheet because there will be no chance the accountant or the buyer will accept the current one he has. ... Since he is using the bank loan for...
Balance Sheet (I) b. ... BALANCE SHEET 1. ... An asset should be classified as a current asset, when it: (a) is expected to be realized in, or is intended for sale or consumption in, the enterprise's normal operating cycle; (b) is held primarily for the purpose of trading; (c) is expected to be realized within twelve months after the balance sheet date; or (d) is cash or a cash equivalent (as defined in SFAS 17 " Cash Flow Statements") unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date. ... A liab...
Financial Accounting Managerial Accounting Preparing financial statements General accounting Auditing financial statements Cost accounting Budgeting Internal auditing The purpose of the balance sheet is to provide information that helps users understand a company's financial status as of a given date. As...
Adjusting & Closing Entries - Preparation of Financial Statements JOURNAL ENTRIES: PART -III You have now put together two balance sheets for your business. The first is known as a beginning balance sheet and the second is a first attempt at an ending balance sheet. Right now we are going to work with that ending sheet. Your next job is to make all the balances right at the end of the month so we can produce the final copy of the ending balance sheet. To do this we have to make sure all the accounts listed on that balance sheet are correct. ...
Cash flow statements, the balance sheet; income statements, along with ratios associated with each area will be highlighted. ... Dale Bourdette who kindly mailed me actual industry average details, campground cash flow statements, balance sheets, and other financial details from actual operating campgrounds located in Florida. ... Balance Sheet The campground balance sheet provides a quick review of the financial condition of the company. . The balance sheet is prepared on an as needed basis or typically only once a year. The balance sheet will provide the net asset value to the owner as t...
One of the most important tools to evaluate the financial performance of any entity is preparing a comprehensive balance sheet taking care of all the assets and liabilities of the company. In order to analyze the financial performance of the banks an income statement and a balance sheet for the two banks over the same financial year was prepared and attached to this document to help in important calculations. The balance sheet and the income statement are available at the appendix of this paper. ... Bank Ratio Calculations and Evaluation There are important valuation values such as the Book...
These methods seem to fair and consistent, leading to an accurate representation on Wells Fargo's balance sheet. I do not believe that a change in depreciation methods would have a drastic enough change on the balance sheet to cause alarm. ... Wells Fargo does not have product warranties; therefore it has no warranty liabilities showing on its balance sheet. ... If this amount were to be removed from the balance sheet, as many suggest it should, the bottom line would change, although not by a large enough margin to cause alarm. ... Although they are conservative in managing their ass...