Balance Sheet

1) Key Things To Know	5) Medium Practice Test
2) Self Test	6) Hard Practice Test
3) Practice as You Learn	7) On Your Test
4) Easy Practice Test	8) Quick Study Sheet

 

 

Quick Study Sheet

The Format of the Balance Sheet: 
 
Assets:                                                                       Liabilities:
 
Current Assets                                                Current Liabilities:
            Cash                                                               Accounts Payable
            Accounts Receivable                                      Accrued Expenses (Liabilities)
            Inventory                                                         Unearned Revenues
            Prepaid Expenses                                           “_______” Payables                           
            Short-term Investments                                  Income Taxes Payable
            Short-term Notes Receivable                         Short-term Notes Payable
            Supplies                                                         Current Portion of Long-term Debt
                 Total Current Assets                                              Total Current Liabilities
              
            Long-term Investments                                   Bonds Payable
            Long-term Notes Receivable                          Long-term Debt
                                                                                   Long term Notes Payable
                                                                                   Total Liabilities
            Property/Plant/Equipment (P/P/E):
              Land
              Building
              Equipment
                 Less Accumulated Depreciation
                       Net P/P/E                                             Stockholder’s Equity:
 
                                                                                      
            Intangible Assets                                             Common Stock
              Goodwill                                                        Additional Paid in Capital
              Patents, net                                                   Retained Earnings
              Trademarks, net                                            less Treasury Stock
              Copyrights, net                                                                                             
                Total Intangible Assets                                   Total Stockholder’s Equity
 
            Other Assets                                      
 
            Total Assets                           =          Total Liabilities & Stockholder’s  Equity
 
Operating cycle – the time it takes a company to spend cash to do business and get the cash back again.  – Buy inventory, pay expenses, sell the inventory to a customer, collect receivables
 
The balance sheet is listed in the order of liquidity – how soon it will impact cash
 
Current means the cash is expected to be collected or paid in 1 year or less
Long term/Non-current means the cash is expected to be collected or paid > 1 year
 
The balance sheet is reported at historical cost; FM value on the date of the transaction