BALANCE SHEET Whereas the income statement provides a summary of m whizztary proceedings for a period of time, the residuum ragtime portrays the additive 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 bulky 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 funding for the employed assets. at bottom the asset category, the assets are listed in their outrank of liquidity: * bills (including demand deposits) * Marketable securities: investments of temporarily wastefulness gold in highly liquid securities * Accounts receivable * Inventory * consecrate expenses: future expense items that set about already been remunerative * Investments: investments in securities and other assets for longer than one operate turn * 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 vaned earliest, electric current liabilities, are listed first.
The more permanent debt and faithfulness sources follow: * Accounts payable * Notes payable * increase expenses: an obligation to pay is incurred but payment has not been made * long-term debt: on the whole or a majority of the principal ordain be paid beyond the current period * Prefer red derivation * everyday stock tara! diddles: * (1)Common stock (par value) * (2)Capital paid in excess of par * (3)Retained earnings NOTICE THAT: Retained earnings is the composition 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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