Wednesday, November 19

Balance sheet and presentation format

Balance Sheet
Show the values of assets and liabilities of the firm at a point of time.
Values may be historical values, fair market values or historical values adjusted for amortization.

Assets = Liabilities + Owner’s Equity

Account format
Assets on the left, liability and equity on the right

Report format
Assets, liabilities and equity in one column

Classified balance sheet
Group similar items together to arrive at significant subtotals

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