Professional Documents
Culture Documents
Trey 3
Trey 3
Trey 3
PRODUCTION
PRESENTS
..AN UNEXACT AND JUST MY APPROXIMATION
BALANCE SHEET & IT’S ACCOUNT TITTLE
SEQUENCE
• Usually, the assets and liabilities are presented accordingly to their liquidity.
• Cash, being the most liquid asset, is presented first, followed by receivables,
inventories, and PPE accounts. -Basically, the shorter the time an asset is expected
to be converted into cash, the more liquid it is, and this is the reason why cash is
presented first. The same is followed in the presentation of liabilities. Those liabilities
expected to be paid first are presented before those that will be paid later.
BALANCE SHEET & IT‘S DATE REPORTING
MECHANICS
• The phrase "for the period ended" is used for the heading. FOR This is because the
income statement is the result of operations on an entity for a particular period.
• Meanwhile, in the heading of the balance sheet, the phrase “as of” is used because
what is shown are the amounts of assets, liabilities, and owner's capital at a certain
point in time.
BALANCE SHEET & WHAT IS PERIODS?
• 1st U then report the balance “as of” or “end period” then find what happen or what you’ve intrested
account title… .. ..😶
• 2nd I dunno if it’s ruled that you must include the transaction logs of that tittle you’ve picked..
• Example= Owner‘s Capital you’ve pick.. As of December 1 2023
• then include that what happen explanation and balance on that timewall
• 3rd Then finally the balance/ total..
• Example= If total Owner’s capital as of/period end December 1 2023 is 900 000 000 000 000k
• Then report Owner’s capital as of/period end December 1 2023 is 900 000 000 000 000k
CLOSING ENTRIES AND WHY?