• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. Accounting Revision Notes

    Divide the trial balance by 2. Search for an entry equal to the difference in the ledger accounts on the general journal. 4. Divide the trial balance difference by 9. a. Search for a transposed number in the ledger accounts e.g.

  2. Maynard Company Balance Sheets a of June 1 and June 30 compared.

    This shows that stockholders are making good use of credit in order to operate its business, while in the view of creditors it is still good even though current ratio decreases by 2.20, since current assets can still pay current liabilities in full.

  1. Profit & Loss Accounts and Balance sheet.

    Net Profit: - Net Profit in the year 2005 was only 28% but it has been decreased by 1% in the following year (2006) and again the following year (2007) it decreases by 9.2%. This means that the ratio is getting worse.

  2. A2 Business CourseWork

    There are a variety of economic factors that Tesco will have to assess and that will influence their decisions which include: Demand: Demand is important to any business. If there is no demand for a product, people will not buy it and you will not make any profit, and most likely go bankrupt.

  1. Financial Ratio Analysis.

    cash payments and receipts relating to transactions made by a business, rather than when the money is earned or when expenses are incurred, as in accrual accounting. It is claimed to be easier to understand and less arbitrary in its allocation processes than accrual accounting.

  2. Balance sheet for Dolores boutique

    Dolores boutiques closing balance for august was -£23915 which is the lowest they have had up to that month. In august Dolores boutique can avoid a negative cash flow by lowering their expenditure. They can lower the amount of money they spend on stock.

  1. Justify a proposed comprehensive and integrated nancial service package that is appropriate for the ...

    Lastly, although Ifter would like to get onto the property ladder as soon as possible, it isn’t reasonable. You can only get a mortgage that is four time more than your salary and with the outstanding debt he has he will only be lent £86,000 which isn’t enough to buy

  2. Fractional Reserve Banking

    The 2 boxes marked in red show the location of the original $100 deposit throughout the entire process. The total reserves plus the last deposit (or last loan, whichever is last) will always equal the original amount, which in this case is $100.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work