The analysis and application of the balance sheet

1732 WordsFeb 4, 20147 Pages
The analysis and application of the balance sheet Kuang xin Financial accounting is one of the most popular major in the world. In the study of accounting, people must know and use expertly the three accounting statement, balance sheets, cash flow, and income statement. It is the most basic and useful skill in one’s career of accounting. But in the four basic financial statement, the balance sheet or called statement of financial position is the only one which describe a single point in time of a business’ calendar year. “In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership, a…show more content…
Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business 's equity is the difference between total assets and total liabilities.”[Small Business Administration] There are anther type of balance sheet is US small business balance sheet. It is a small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business 's equity is the difference between total assets and total liabilities. Guidelines for balance sheets of public business entities are given by the International Accounting Standards Board and numerous country-specific organizations/companys. “Balance sheet account names and usage depend on the organization 's country and the type of organization. Government organizations do not generally follow standards established for individuals or businesses.”[Personal balance] If applicable to the business, summary values for the following items should be included in the balance sheet:[16] Assets are all the things the
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