classified balance sheet

(noun)

a summary of a company's assets, liabilities, and equity

Related Terms

Examples of classified balance sheet in the following topics:

  • Temporal Classification

    • Cash, receivables, and liabilities on the Balance Sheet are re-measured into U.S. dollars using the current exchange rate.
    • "Classified" means that the balance sheet accounts are presented in distinct groupings, categories, or classifications.
    • Most accounting balance sheets classify a company's assets and liabilities into distinct groups such as current assets property, plant, equipment, current liabilities, etc.
    • These classifications make the balance sheet more useful
    • Identify when it would be necessary to use the temporal method on the balance sheet

  • Introduction to the Balance Sheet

    • The balance sheet is a summary of the financial balances of a company and reflects the company's solvency and financial position.
    • A classified balance sheet has the same three major categories of assets, liabilities, and stockholder's equity, but it breaks those categories down further to give a better idea of the profitability and strength of the company.
    • Both internal and external users use the balance sheet.
    • The balance sheet also demonstrates how liquid the business is.
    • Name the two types of balance sheets and identify which accounts are listed on the balance sheet

  • Balance Sheet Analysis

    • Balance sheet analysis is process of understanding the risk and profitability of a firm through analysis of reported financial information.
    • In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business organization.
    • A balance sheet is often described as a "snapshot of a company's financial condition".
    • Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.
    • Balance sheet analysis consists of 1) reformulating reported Balance sheet, 2) analysis and adjustments of measurement errors, and 3) financial ratio analysis on the basis of reformulated and adjusted Balance sheet.

  • Reporting Long-Term Liabilities

    • Debts that become due more than one year into the future are reported as long-term liabilities on the balance sheet.
    • "Notes Payable" and "Bonds Payable" are also examples of long-term liabilities, and they often introduce an interesting distinction between current liabilities and long-term liabilities presented on a classified balance sheet.
    • On Company X's 12/31/12 balance sheet, a long-term liability for 100,000 would be reported, but what about the balance sheet as of 12/31/13?
    • Continuing one year forward, Company X would report a current liability of 20,000 and a long-term liability of 60,000 on its balance sheet as of 12/31/2014.
    • See below for the balance sheet reporting treatment of the current and long-term liability portions of the Note Payable from initiation to final payment.

  • Classifying Receivables

    • Receivables can be classified as accounts receivables, trade debtors, bills receivable, and other receivables.
    • On a company's balance sheet, receivables can be classified as accounts receivables or trade debtors, bills receivable, and other receivables (loans, settlement amounts due for non-current asset sales, rent receivables, term deposits).
    • Accounts receivable therefore can be classified according to their age.

  • Assets

    • Assets on a balance sheet are classified into current assets and non-current assets.
    • Assets are on the left side of a balance sheet.
    • A standard company balance sheet has three parts: assets, liabilities and ownership equity.
    • On the left side of a balance sheet, assets will typically be classified into current assets and non-current (long-term) assets.
    • The investor keeps such equities as an asset on the balance sheet.

  • Being Aware of Off-Balance-Sheet Financing

    • Off-Balance-Sheet-Financing represents rights to use assets or obligations that are not reported on balance sheets to pay liabilities.
    • Off-Balance-Sheet-Financing is associated with debt that is not reported on a company's balance sheet.
    • Furthermore, uncertain assets or liabilities are subject to being classified as "probable", "measurable" and "meaningful".
    • An example of off-balance-sheet financing is an unconsolidated subsidiary.
    • Jeffrey Skilling is the former CEO of Enron, which was notorious for it's use of off-balance-sheet-financing.

  • Types of Receivables

    • Receivables can generally be classified as accounts receivables or notes receivable, though there are other types of receivables as well.
    • Receivables can be classified as accounts receivables, notes receivable and other receivables ( loans, settlement amounts due for non-current asset sales, rent receivable, term deposits).
    • Accounts receivable usually appear on balance sheets below short-term investments and above inventory.
    • The maturity date of a note determines whether it is placed with current assets or long-term assets on the balance sheet.
    • If significant, these nontrade receivables are usually listed in separate categories on the balance sheet because each type of nontrade receivable has distinct risk factors and liquidity characteristics.

  • Amortized Cost Method

    • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
    • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
    • In order to record the interim interest revenue and report the investment on the balance sheet, it is necessary to prepare an amortization schedule for the debt.
    • The Z Company's investment in Tee company is shown on the balance sheet as follows:
    • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.

  • Reporting Cash

    • Cash and cash equivalents are reported in the current asset section of a business's balance sheet.
    • Cash is an asset, which means it is included in a business's balance sheet .
    • When the company's cash balance is reported on its balance sheet, all of those accounts are combined into one "cash" line item.
    • A sample balance sheet in Chinese.
    • Cash and cash equivalents are reported on the balance sheet.