Accounting Category: Balance sheet

Accounting Articles

May 16, 2013

Fixed asset (property, plant and equipment) rollforwards represent an important accounting tool for period end closes, financial statement preparation and so forth. In this article we discuss the nature and provide an example of a fixed asset rollforward.

May 9, 2013

In our computerized world most accounting records are maintained in accounting software databases or spreadsheets, and accountants donít think much in terms of general ledger or subsidiary ledgers like they did when most accounting records were maintained on paper. However, such concepts still exist. In this second part of the two-part article we will look at examples of accounts payable subsidiary ledger (i.e., accounts payable aging), inventory subsidiary ledger, and fixed assets subsidiary ledger.

April 30, 2013

In our computerized world most accounting records are maintained in accounting software databases or spreadsheets, and accountants donít think much in terms of general ledger or subsidiary ledgers like they did when most accounting records were maintained on paper. However, such concepts still exist. In this first part of the two-part article we will discuss what subsidiary ledgers are and look at an example of an accounts receivable subsidiary ledger (i.e., accounts receivable aging).

April 23, 2013

In a classified balance sheet, current (short-term) and non-current (long-term) assets and liabilities are presented separately. In most cases current assets and liabilities are easy to distinguish and donít present any issues with their classification and presentation on a balance sheet. However, there are certain items which may require special treatment because they need to be separated into the current and non-current portions. In the second part of this article we will discuss two items: deferred rents and notes payable.

April 17, 2013

In a classified balance sheet, current (short-term) and non-current (long-term) assets and liabilities are presented separately. In most cases current assets and liabilities are easy to distinguish and donít present any issues with their classification and presentation on a balance sheet. However, there are certain items which may require special treatment because they need to be separated into the current and non-current portions. In the first part of this article we will discuss one of such items: prepaid insurance.

February 6, 2013

Leasehold improvements represent additions to a lease property. Accounting for such improvements normally does not present a significant issue except for their amortization. This article covers a common issue which relates to the amortization of leasehold improvements.

January 31, 2013

From time to time accounting records may present unusual account balances. For example, a customer may have a credit balance in accounts receivable or a vendor may have a debit balance in accounts payable. This article provides examples of such situations and directions on how to approach them from the accounting standpoint. Offsetting assets and liabilities is also discussed.

January 15, 2013

Companies may build (construct) some of their fixed assets because such assets may not be available for purchase from other companies or because it is cheaper to do so. An important aspect of constructing own assets from the accounting standpoint is the cost accumulation. In this article we will discuss which expenditures should be included in the cost of self-constructed assets (interest capitalization is not covered in this article).

November 23, 2012

There are two types of working capital: permanent working capital and temporary working capital. In this article you will learn the difference between the two and how each of them can be financed (funded).

August 20, 2012

What are operational obligations? What are financing obligations? How is a bond different from a note payable? How to define long-term liabilities? Find answers in this accounting article.

<< Previous    1    2    3    4    Next >>   

Accounting Categories
Accounting categories represent a collection of accounting guides and answers related to one accounting area.