BALANCE SHEET Whereas the income statement provides a summary of mvirtuosotary proceedings for a period of time, the residual ragtime portrays the cumulative 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 extensive categories. The assets engaged in the operations of the firm compose one phratry while the other, liabilities and net worth, is composed of the sources of financing for the employed assets. at bottom the asset category, the assets are listed in their auberge of liquidity: * bills (including demand deposits) * Marketable securities: investments of temporarily oversupply hard cash in highly liquid securities * Accounts receivable * Inventory * contribute expenses: future expense items that set about already been nonrecreational * Investments : investments in securities and other assets for longer than one operate wheel * 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 acquire earliest, electric current liabilities, are listed first.
The more permanent debt and loveliness sources follow: * Accounts payable * Notes payable * increase expenses: an obligation to pay is incurred but payment has not been made * long-term debt: in all 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 greenback used to measure the accumulation of earnings over the vivification of the firm. It...If you want to get a full essay, order it on our website:
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