Which account amount is the most important (larger) in the assets side and in the liabilities side of the balance sheet? What do you think about that? Example CompanyBalance SheetDecember 31, 2017ASSETSLIABILITIESCurrent assetsCurrent liabilitiesNotes payableAccounts payableWages payableInterest payableTaxes payableWarranty liabilityUnearned revenuesCash$2,100$5,000Petty cashTemporary investments10035,90010,0008,5002,900Accounts receivable - net40,500InventorySuppliesPrepaid insuranceTotal current assets31,0003,8006,1001,1001,5001,50089,000Total current liabilities61,000Long-term liabilitiesNotes payableBonds payableTotal long-term liabilitiesInvestments36,00020,000Property, plant & equipment400,000420,000Land5,500Land improvementsBuildingsEquipmentLess: accum depreciationProp, plant & equip - net6,500180,000201,000(56,000)337,000Total liabilities481,000Intangible assetsSTOCKHOLDERS’ EQUITY105,000200,000305,000GoodwillCommon stock110,000Retained earningsAccum other comprehensive incomeLess: Treasury stockTotal stockholders' equityTrade names220,0009,000(50,000)289,000Total intangible assetsOther assets3,000Total assets$ 770,000Total liabilities & stockholders' equity$ 770,000The notes to the sample balance sheet have been omitted.

Balance sheet is the summary of the financial position of the company on a particular date in which…

Answered: Which account amount is the most…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which account amount is the most important (larger) in the assets side and in the liabilities side of the balance sheet? What do you think about that?

Example Company
Balance Sheet
December 31, 2017
ASSETS
LIABILITIES
Current assets
Current liabilities
Notes payable
Accounts payable
Wages payable
Interest payable
Taxes payable
Warranty liability
Unearned revenues
Cash
$
2,100
$
5,000
Petty cash
Temporary investments
100
35,900
10,000
8,500
2,900
Accounts receivable - net
40,500
Inventory
Supplies
Prepaid insurance
Total current assets
31,000
3,800
6,100
1,100
1,500
1,500
89,000
Total current liabilities
61,000
Long-term liabilities
Notes payable
Bonds payable
Total long-term liabilities
Investments
36,000
20,000
Property, plant & equipment
400,000
420,000
Land
5,500
Land improvements
Buildings
Equipment
Less: accum depreciation
Prop, plant & equip - net
6,500
180,000
201,000
(56,000)
337,000
Total liabilities
481,000
Intangible assets
STOCKHOLDERS’ EQUITY
105,000
200,000
305,000
Goodwill
Common stock
110,000
Retained earnings
Accum other comprehensive income
Less: Treasury stock
Total stockholders' equity
Trade names
220,000
9,000
(50,000)
289,000
Total intangible assets
Other assets
3,000
Total assets
$ 770,000
Total liabilities & stockholders' equity
$ 770,000
The notes to the sample balance sheet have been omitted.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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