What are the main reports generated using the information on an organisation’s balance sheet
Definition of Balance Sheet
A balance sheet reports the dollar amounts of a company's assets, liabilities, and owner's equity (or stockholders' equity) as of midnight of the date shown in the heading.
Basically a balance sheet also shows the sources of funds and the application of the funds of the business. So many sub reports can be generated as per the requirement mostly which are usually apparent from the notes of accounts if we ever feel the need to have a detailed view on any particular line item.
Following are a little detailed notes in terms of the elements in the balance sheet.
Examples of Balance Sheet Elements
Assets that are reported on the balance sheet are the company's resources such as cash, accounts receivable, inventory, investments, land, buildings, equipment, some intangible assets. Generally assets are reported at their cost or a lower amount due to the cost principle, depreciation, and conservatism. The cost principle also means that some very valuable aspects of the company are not listed as assets. For example, a company's outstanding reputation, its effective management team, and its amazing brand recognition are not reported as assets if they were not acquired in a transaction involving another party or entity.
Liabilities are a company's obligations as of the balance sheet date and will include loans payable, accounts payable, accrued expenses not yet recorded in accounts payable, warranty obligations, taxes payable, and more.
Stockholders' equity or owner's equity reports the amounts that were invested by the owners plus the company's earnings that the owners chose not to withdraw as dividends or drawings.
Additional Balance Sheet Information
The balance sheet classifications allow the reader to easily compute the amount of a company's working capital and to determine if a company is highly leveraged.
Every balance sheet that is distributed by a company should include notes (or footnote disclosures). These notes provide important additional information concerning the company's financial position including potential liabilities not included in the amounts reported on the face of the balance sheet.
What are the main reports generated using the information on an organisation’s balance sheet
Bethesda Mining Company reports the following balance sheet information. Prepare the 2018 and 2019 common-size balance sheets for the company. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.)
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Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. Suppose that the company had sales of $2,751,332 and net income of $86,432 for the year ending December 31, 2019. Calculate the DuPont Identity.
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A company reports the following income statement and balance sheet information for the current year: Net income $424,000 Interest expense 80,000 Average total assets 4,200,000 Determine the return on total assets. (Round percentages to one decimal place.) ___________%
The balance sheet reports the retained earnings balance at the end of a fiscal year. What is the source of this ending balance of retained earnings? O A. Adjusted Trial Balance O B. Statement of Retained Earnings O C. Unadjusted Trial Balance O D. Trial Balance Worksheet Click to select your answer. e Type here to search
Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income $250,000 Interest expense 100,000 Average total assets 2,500,000 Determine the return on total assets. Round percentage to one decimal place. %
Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income $424,000 Interest expense 80,000 Average total assets 4,200,000 Determine the return on total assets. (Round percentages to one decimal place.)
Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $182,450 Interest expense 32,200 Average total assets 2,650,000 Determine the return on total assets. If required, round the answer to one decimal place. %
Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income $313,230 55,270 Interest expense Average total assets 5,500,000 Determine the return on total assets. If required, round the percentage to one decimal place.