1. Accounting and the Adjusting Process
Most of us at some stage in our lives will be required to compute a listing of our possessions. Such a listing of possessions is a major element in the construction of a balance sheet. Far from being a precise statement on what the balance sheet is, it can easily be perceived from a phylosofical and psychological view point, and then, though defined at present times, it can be related with the historical side of the balance sheet. The link is as simple as that: one would generally describe his possessions by listing the things he has and those that should be returned to him, as well as his debts to other people, further more, he would intuitively put those lists on the scales to find out what his financial state is, or to get the balance. To extend this etimological analogy a bit more, by putting on the different sides of the scales the lists of his possessions and his debts, one would, probably intuitively, measure his financial position with the height difference that would occur between the sides of the scales. Then, in the prossess of separation of the owner from the manager, this way of measurement of a person's financial state, was naturally transferred into what we now call an enterprise's balance sheet. Furthermore, the fundamental method of scaling possessions and debts continues be the basis of this document. As we all know a fundamental characteristic of every balance sheet is that the total figure for assets always equals the total of liabilities plus owners' equity. As we have already seen, actually the above simple equation, representing the theoritical essense of this document, and a basis of its practical side, is the reason for it to be called balance. Actually, the two sides of the balance sheet are merely two views of the same business property. Having defined the essence of the balance sheet, in theoretical aspect we have to review the concepts in accordance with which it is built up.
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...