sample balance sheet

Cash: A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.)

Petty cash:A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.

Temporary investments:A current asset account which contains the amount of investments that can and will be sold in the near future.

Inventory:A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold. The inventory of a manufacturer should report the cost of its raw materials, work-in-process, and finished goods. The cost of inventory should include all costs necessary to acquire the items and to get them ready for sale.

Supplies: A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account.


Doubtful account: Name given to account that records the sums who's collection looks uncertain. Such accounts are termed bad debts and are usually written off against the profit.


Liabilities: An obligation that legally binds an individual or company to settle a debt. When one is liable for a debt, they are responsible for paying the debt or settling a wrongful act they may have committed.


Asset: Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.