Current assets, such as cash, accounts receivable and short-term investments, are listed first on the left-hand side and then totaled, followed by fixed assets, such as building and equipment. On a balance sheet, assets are listed in categories, based on how quickly they are expected to be turned into cash, sold or consumed. Assets also include intangibles of value, like patents or trademarks held. ![]() Your assets include concrete items such as cash, inventory and property and equipment owned, as well as marketable securities (investments), prepaid expenses and money owed to you (accounts receivable) from payers. Note: Some balance sheets do not use the left-right format and instead list assets on top, followed by liabilities and then equity.Īssets are the things your practice owns that have monetary value. ![]() In other words, the left and right sides of a balance sheet are always in balance. Consistent with the equation, the total dollar amount is always the same for each side. With assets listed on the left side and liabilities and equity detailed on the right. The layout of a balance sheet reflects the basic accounting equation: Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year.Ī sample balance sheet for the fictitious Springfield Psychological Services at Decemand 2003 is presented below, as an example. ![]() This financial statement details your assets, liabilities and equity, as of a particular date. Your balance sheet (sometimes called a statement of financial position) provides a snapshot of your practice's financial status at a particular point in time.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |