BALANCE SHEET Whereas the income statement provides a summary of m bingletary proceedings for a period of time, the symmetricalness ragtime portrays the accumulative results of proceedings at a point in time. The balance sheet may present the position of the firm as a result of transactions for six months, twenty-five years, or otherwise periods. The balance sheet is divided into two full(a) categories. The assets assiduous in the operations of the firm compose one phratry while the other, liabilities and net worth, is composed of the sources of cede for the employed assets. at bottom the asset category, the assets are listed in their position of liquidity: * bills (including demand deposits) * Marketable securities: investments of temporarily waste notes in highly liquid securities * Accounts receivable * Inventory * pay expenses: future expense items that set about already been remunerative * Investments: investments i n securities and other assets for longer than one operate calendar method * Plant and equipment adjusted for accumulated depreciation The various sources of financing of a firm are listed in their order of maturity. Those sources that raise earliest, electric current liabilities, are listed first.
The more permanent debt and fairness sources follow: * Accounts payable * Notes payable * increase expenses: an obligation to pay is incurred but payment has not been made * long-term debt: all(a) or a majority of the principal ordain be paid beyond the current period * Preferred stock * everyday stock taradiddles: * (! 1)Common stock (par value) * (2)Capital paid in excess of par * (3)Retained earnings NOTICE THAT: Retained earnings is the theme used to measure the accumulation of earnings over the animation of the firm. It...If you want to get a full essay, order it on our website:
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