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Balance sheet

August 5, 2009

Balance sheet:

In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and Ownership equity for an organization or individual on a specific date, such as the end of its financial year. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time, instead of a period of time.

Types of balance sheets:
A balance sheet summarizes an organization or individual’s asset, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets.Larger businesses tend to have more complex balance sheets, and these are presented in the organization’s annual report.Large businesses also may prepare balance sheets for segments of their businesses.

Personal balance sheet:
A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due or overdue, and long-term liabilities such as mortgage and other loan debt.

Small business balance sheet:
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.
Sample Small Business Balance Sheet

Assets

Liabilities and Owners’ Equity

Cash

$ 16,600

Liabilities

Accounts Receivable

1,200

Notes Payable

$30,000

Land

52,000

Accounts Payable

7,000

Building

36,000

Total liabilities

$37,000

Tools and equipment

12,000

Owners’ equity

Capital Stock

$ 80,000

Retained Earnings

800

Total owners’ equity

$80,800

Total

$117,800

Total

$117,800
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