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Example Company Balance Sheet December 31, 2010 ASSETS Current Assets Cash Petty Cash Temporary Investments

Accounts Receivable - net Inventory Supplies Prepaid Insurance Total Current Assets Investments Property, Plant & Equipment Land Land Improvements Buildings Equipment Less: Accum Depreciation Prop, Plant & Equip - net Intangible Assets Goodwill Trade Names Total Intangible Assets Other Assets Total Assets LIABILITIES Current Liabilities Notes Payable Accounts Payable Wages Payable Interest Payable Taxes Payable Warranty Liability Unearned Revenues Total Current Liabilities

$ 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000

$ 5,000 35,900 8,500 2,900 6,100 1,100 1,500 61,000 20,000 400,000 420,000

36,000 Long-term Liabilities Notes Payable Bonds Payable 5,500 Total Long-term Liabilities 6,500 180,000 201,000 Total Liabilities (56,000) 337,000 STOCKHOLDERS' EQUITY 105,000 Common Stock 200,000 Retained Earnings 305,000 Less: Treasury Stock Total Stockholders' Equity 3,000 $770,000 Total Liab. & Stockholders' Equity


110,000 229,000 (50,000) 289,000 $770,000

Assets are things that the company owns. They are the resources of the company that have been acquired through transactions, and have future economic value that can be measured and expressed in dollars. Assets also include costs paid in advance that have not yet expired, such as prepaid advertising, prepaid insurance, prepaid legal fees, and

prepaid rent. (For a discussion of prepaid expenses go to Explanation of Adjusting Entries.)

Examples of asset accounts that are reported on a company's balance sheet include:

Cash Petty Cash Temporary Investments Accounts Receivable Inventory Supplies Prepaid Insurance Land Land Improvements Buildings Equipment Goodwill Bond Issue Costs Etc.

Notes Payable Accounts Payable Salaries Payable Wages Payable Interest Payable Other Accrued Expenses Payable Income Taxes Payable Customer Deposits Warranty Liability Lawsuits Payable Unearned Revenues Bonds Payable Etc.

The Balance Sheet A balance sheet shows the financial resources. that a company has at a point in time and where they came from. It is an instant photograph that displays the company's financial station at the end of a business month, quarter or year. The organization of a balance sheet reflects this basic arrangement: assets equal debts plus equity The chart of accounts is a listing of the accounts that are reflected in the financial statements; Assets are often listed in the order of their liquidity which means how easy it would be to convert each asset into cash. Assets are divided into three categories: Current Assets, Fixed Assets, and Other. Assets. Current assets will likely be turned into cash or converted into a(n) expense. within a year Liabilities are debts or others. stemming from goods or services received by the company. Fixed assets are saleable, but are not expected to be converted to cash in the final. course of business If the assets of a company are greater than its liabilities, then the equity of the business is the positive difference. between the two numbers

Income Statements The statement of income and expenses reports the company's income and expenses for the time period: it is also called a profit-and-loss statement. Correct answer: (c) profit The first item on the statement is the total amount of sales of products or services; this is often referred to as gross sales. Correct answer: (a) gross The main deduction from this revenue is called cost of sales, the amount of money the company spent to produce the same goods or services. Correct answer: (a) cost The next deduction is operating expenses for example, administrative salaries and research costs, which do not vary directly with production. Correct answer: (b) operating Depreciation expenses the wear and tear on assets like machinery, equipment and furnishings. Correct answer: (d) tear The depreciation charge for using these assets during the accounting period is a function of their original cost. Correct answer: (d) function Interest income is the money that the company earns by keeping its cash in savings accounts, term deposits, etc. Correct answer: (c) Interest Finally, income tax is deducted. Correct answer: (c) income The final entry is the bottom line, which represents net earnings of the company during the accounting period. Correct answer: (d) bottom

Additionally, EPS indicates how much shareholders would receive if the company distributed all of its net earnings as dividends. Correct answer: (a) EPS Cost Accounting Management or cost accounting systems are part of a company's information system and are used for tracking costs and allocations to judge operational efficiency. This is an internal accounting system, rather than one for outside reporting. There are no fixed rules governing how a company should keep track of cash flows for cost accounting purposes. Capital budgeting is a form of forecasted cost accounting for long-term projects or expenditures. Cost accounting applications are major financial drivers in everyday corporate decisionmaking. Cost accounting is important for estimating the profitability of current and future activities. When good cost accounting procedures are implemented, the company may find out that they have been producing a non-profitable product or service. Cost accounting motivates managers toward company goals. It also measures the performance of managers and departments in the company. Variable costs change in proportion to the level of production activity, while fixed costs remain unchanged. Accountants Most accounting positions require a bachelor's degree in accounting or a related field or an equivalent combination of education and experience. Many companies want graduates with a master's degree in accounting, or a master's degree in business administration with a concentration in accounting. Some schools offer students a chance for hands-on experience with part-time internship programs in accounting or commercial firms.

Accountants help make sure that a firm is run efficiently, that its records are maintained accurately, and that its taxes are paid properly and in a timely manner. Nowadays, accountants are broadening the services they offer with budget analysis, investment planning, and IT consulting. Public accountants, many of whom are CPAs, generally have their own companies or work for major accounting firms. Some accountants specialize in forensic accounting investigating white-collar crimes such as securities fraud and embezzlement. Many work closely with law enforcement officers and lawyers during investigations and often appear as expert witnesses during trials. Management accountants record and analyze the financial information of the firms in which they are employed. Government accountants work in the public sector, maintaining and monitoring the recordkeeping of government departments and agencies.

Step 1: Give a brief introduction about yourself: For example: My name is Peter. I graduated from XYZ University with bachelor degree in Sales. After 5 years working as a Sales Manager, I have well experienced in training, mentoring and motivating other sales personnel to achieve the goals of the Company.