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Balance Sheets. The balance sheet shows an overall financial view, this can be helpful in purchasing decisions.

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Introduction

Makenzie Shurtz Accounting 557 Week 8 Assignment 1 5/23/2012 Professor Brandy Strayer University Balance Sheet in Accounting A balance sheet is used in our everyday lives in several ways and we don't even realize it, but it is very important. The balance sheet shows an overall financial view, this can be helpful in purchasing decisions. Individual's personal finances are put into perspective and are more manageable looking at this view. A personal balance sheet allows a person to see if they are over spending on credit compared to paying cash. ...read more.

Middle

This part helps analysts, investors and creditors understand what a business owns and what their objectives are. The liability part of the balance sheet reports what the company owes. Current liabilities are financial obligations that are owed by the upcoming year. Accounts payable and short-term loans are examples of current liabilities. Long-term liabilities are obligations that the company expects to pay after one year. The relationship between current assets and liabilities can be expressed in a ratio and as a working capital, a dollar amount. ...read more.

Conclusion

The financial information could be utilized to prepare informed strategies to improve customer service skills in many ways. The balance sheet would show the manager the volume. Additionally, if the workload was increased the balance sheet has the ability to give the proper information to help the manager schedule appropriate staffing. So, balance sheets work in our favor in many different ways. Here is a sample of a balance sheet below: Assets Liabilities and Owners' Equity Cash $6,600 Liabilities Accounts Receivable $6,200 Notes Payable $30,000 Tools and equipment $25,000 Accounts Payable Total liabilities $30,000 Owners' equity Capital Stock $7,000 Retained Earnings $800 Total owners' equity $7,800 Total $37,800 Total $37,800 Reference: http://www.businesstown.com/accounting/basic-sheets.asp http://www.federalreserve.gov/monetarypolicy/bst_fedsbalancesheet.htm http://www.investopedia.com/articles/04/031004.asp ...read more.

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