BALANCE SHEET Flashcards
is one of the financial statement that must be prepared by
an accountant to identify the financial position of the
business.
BALANCE SHEET
It also shows what an entity owns, how much it owes and
the amount that is invested in the business.
BALANCE SHEET
is the ability of the assets to pay the short –
term obligations of the company, that will mature within
the one year period of the balance sheet.
LIQUIDITY
is the ability of the assets to pay both short
and long term obligations, but still shows stability of the
business.
SOLVENCY
refers on what
the company owns.
ASSET
refers to what the
company owes
LIABILITIES
it indicates the
investment done
by the owner.
EQUITY
includes all the assets that can be consumed within the one year period upon making the balance sheet
CURRENT ASSET
CURRENT ASSETS ARE:
CASH
ACCOUNTS RECEIVABLE
NOTES RECEIVABLE
INVENTORIES
SUPPLIES
PREPAID ITEMS
includes all the assets that CANNOT
be consumed within the one year period upon making the
balance sheet.
Non Current Asset
Non Current Assets are:
Land
Building
Machinery
Equipment
Furniture and Fixtures
includes the obligation or the business owes that will mature within one year period.
Current Liability
Current Liabilities are
Accounts Payable
Notes Payable
Salaries Payable
SSS, Medicare and PAG – IBIG contribution Payable
Advances from Customers
Accrued Expenses
includes all the obligations that will
mature after the one year period when the balance sheet
has been made.
Non Current Liability
Non Current Liabilies are
Mortgage Payable
Long – term Bank Loan Payable
