Balance Sheet Homework Solutions

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Balance sheet homework solutions are not very easy to find as there are a lot of factors to this topic. In order to provide a gist, the balance sheet is basically divided into two broad sections namely-

  1. Asset section

Asset section consists of all the latest assets as well as the non-current assets. Among them, the major current assets are as follows-

  • Cash
  • Prepaid expenses
  • Accounts receivable
  • Inventories

The name current asset is assigned to it because of their presence on the balance sheet annually. Current assets are listed on the balance sheet depending upon the degree if liquidity they possess. Thus, the conclusion we draw out of it is that cash is the most liquid. On the other hand, prepaid expenses are the least liquid of all. Cash as an asset is all round available that depends upon the sum of money receivable from the customers.

Inventory is the list of goods that need to be sold along with the prepaid expense paid in advance as a sum.

The assets included in the non-current section, are also known widely known as long-term assets. Those are assets that will reside on the balance sheet for a longer period of time extending up to a few years. These include substances like types of furniture, equipment, plants etc.

  1. Liability and equity section

Liability includes both the current as well as non-current liability. Current liabilities are present on the balance sheet for less than a year whereas the non-current liabilities are present for more than a year. The main current liabilities are as follows-

  • Accounts payable- the sum of money that is yet to be paid to the supplier that will be washed away after the complete payment.
  • Accrued expenses- the sum of money that has to be paid in the future that includes payrolls, taxes and similar to that.

Apart from that, the main non-current liabilities comprise the long-term debt like the loans contracted by the bank. The subsection of equity includes the reported items like owner’s equity, retained profits and similar kinds of stock. The stocks are mainly issued by the organization that includes a payment mode that requires a receivable account. In this, the owner has to pay for the utilities before he tries to set up the account that will receive the amount. The advance payment that he makes will show up as a prepaid expense.

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Drawing the conclusion, we can say that the balance sheet acts as one of the primary financial statements. Thus, it is always recommended for students to seek better sources for acquiring Balance sheet homework solutions. It is more like an instant picture that greatly assists to uphold a risky business. It completely reflects all the things going in a company including its growth as well as its debts. If the liabilities are too much in comparison to the equity then it can be a bit dangerous for the business. All these subject tips are sure to make you acquire some evident Balance Sheet Assignment Solutions. Thus, you need to make the right choice while selecting the ideal web source asking you to provide the prominent Balance Sheet Homework Solutions.

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