Balance sheet : Balance sheet is the financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders ( stockholders’ equity ) over the resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity. Assets : These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets (cash, receivables, short-term investments, inventory, and supplies), long-term investments (land for future use), property, plant, and equipment (fixed assets like land, furniture, and buildings), prepaid expenses, and intangible assets ( goodwill , trademarks, patents, and franchises). Liabilities : The claims creditors have over assets or resources of a company are referred to as liabilities. These are the debt obligations owed by company to creditors. Liabilities are classified on the balance sheet as current liabilities (accounts payable, salaries payable, income taxes payable, short-term notes payable, and unearned revenue) and long-term liabilities (notes payable, bonds payable, and mortgage payable). Stockholders’ equity : The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings . To match : The financial statement items to its corresponding account according to balance sheet classification.

Question

Want to see the full answer?

Answer 1

Question

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.

Chapter 2, Problem 2.1E

To determine

Balance sheet: Balance sheet is the financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over the resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets (cash, receivables, short-term investments, inventory, and supplies), long-term investments (land for future use), property, plant, and equipment (fixed assets like land, furniture, and buildings), prepaid expenses, and intangible assets (goodwill, trademarks, patents, and franchises).

Liabilities: The claims creditors have over assets or resources of a company are referred to as liabilities. These are the debt obligations owed by company to creditors. Liabilities are classified on the balance sheet as current liabilities (accounts payable, salaries payable, income taxes payable, short-term notes payable, and unearned revenue) and long-term liabilities (notes payable, bonds payable, and mortgage payable).

Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

To match: The financial statement items to its corresponding account according to balance sheet classification.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

John was a civil servant with the Trinidad & Tobago (T&T) Government for over 30 years and retired 5 years ago. He is in receipt of a monthly pension. John also received a lump sum on retirement and invested part of this in a small retail business in downtown San Fernando. He retails designer clothing and perfumes and manages to make a modest profit, after deduction of business expenses. John invested the remainder of his pension lump sum in the Unit Trust Corporation of Trinidad and Tobago and is in receipt of monthly dividends. John receives a monthly pension of $6,000. The retail business has a financial year- end of 31 December and in the fiscal year 2011 he made a taxable profit of $100,000. In the fiscal year 2011 in T&T there is a personal allowance of $60,000 and the rate of Income tax is 25%. John no longer qualifies for any of the other deductions available to individuals and receives his pension after deduction of tax under the P.A.Y.E. system. In 2011, John…

Please provide solution this financial accounting question

Need true answer general Accounting

Answer 2

Question

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.

Chapter 2, Problem 2.1E

To determine

Balance sheet: Balance sheet is the financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over the resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets (cash, receivables, short-term investments, inventory, and supplies), long-term investments (land for future use), property, plant, and equipment (fixed assets like land, furniture, and buildings), prepaid expenses, and intangible assets (goodwill, trademarks, patents, and franchises).

Liabilities: The claims creditors have over assets or resources of a company are referred to as liabilities. These are the debt obligations owed by company to creditors. Liabilities are classified on the balance sheet as current liabilities (accounts payable, salaries payable, income taxes payable, short-term notes payable, and unearned revenue) and long-term liabilities (notes payable, bonds payable, and mortgage payable).

Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

To match: The financial statement items to its corresponding account according to balance sheet classification.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

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.

Chapter 2, Problem 2.1E

To determine

Balance sheet: Balance sheet is the financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over the resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets (cash, receivables, short-term investments, inventory, and supplies), long-term investments (land for future use), property, plant, and equipment (fixed assets like land, furniture, and buildings), prepaid expenses, and intangible assets (goodwill, trademarks, patents, and franchises).

Liabilities: The claims creditors have over assets or resources of a company are referred to as liabilities. These are the debt obligations owed by company to creditors. Liabilities are classified on the balance sheet as current liabilities (accounts payable, salaries payable, income taxes payable, short-term notes payable, and unearned revenue) and long-term liabilities (notes payable, bonds payable, and mortgage payable).

Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

To match: The financial statement items to its corresponding account according to balance sheet classification.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 2, Problem 2.1E

To determine