Balance Sheet Excel Llp Balance Sheet Format In Excel In India Society Balance Sheet Excel Format Excel Balance Sheet Software Free Download Balance Sheet
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Your assets are tangible items such as cash inventory buildings land and equipment as well as investments prepaid expenses and money owed to you (accounts receivable notes receivable etc.) On a balance sheet assets are listed in groups based on their liquidity. Liquidity is a measure of how quickly these assets can be converted into cash sold or consumed. Current assets - assets that one can reasonably expect to be converted into cash within a year (e.g. accounts receivable) or can be converted into cash on demand (e.g. stocks) are listed first on the left-hand side and then totaled. Fixed assets follow next - fixed assets are expected to be around a while and persist - these include buildings vehicles and equipment. Finally total assets are added-up at the bottom of the assets section of the balance sheet. Liabilities reflect all the money your business owes out to others.
There are many forms of debt. There is secured debt. That means that the debt is secured by a lien against an asset that you own. The lien and the debt should be for less than the resale value of the asset. Unsecured debt does not have any such lien and is hopefully based on your capacity to service the debt. The problem with unsecured debt like credit cards is that it is not offset by some asset that you own and acts only to reduce the net worth on your balance sheet. Credit card debt would thus be categorized as bad debt as it only acts as a drag on building positive net worth.
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Just like assets liabilities are subdivided into current and non-current. Accounts Payable is a frequent account that can be seen on the balance sheet and is essentially the direct opposite of the accounts receivable balance. While accounts receivable are amounts owed to the company from a customer sale on account accounts payable are amounts owed by the company to its creditors arising from purchases on account both of which are either expected to be collected or paid typically within 30 days. Non-current liabilities represent obligations that will not be settled for more than one year or the company s operating cycle whichever is longer.