What Is a Common Size Balance Sheet?

The balance sheet is also called the statement of financial position. It is the main accounting statement indicating the financial status of the enterprise (ie, the status of assets, liabilities, and owners' equity) on a certain date (usually at the end of each accounting period). The balance sheet uses accounting The principle of balance, the accounting subjects of assets, liabilities, and shareholders 'equity are divided into two major blocks: "assets" and "liabilities and shareholders' equity." After entry, transfer, ledger, trial calculation, adjustment, etc. After the accounting process, based on the status of the static company on a specific date, it is condensed into a single report. The function of the report is to allow all readers to understand the business status of the enterprise in the shortest time, in addition to the internal debugging, business direction, and prevention of malpractices. ^1]

Balance sheet

The balance sheet is an accounting statement that reflects the total assets, liabilities, and owner's equity of a company on a specific date (such as the end of the month, the end of the quarter, and the end of the year). It is a static reflection of the company's operating activities. According to "assets = liabilities + owner's equity This balance formula is based on a certain classification standard and a certain order, and the specific items of assets, liabilities, and owner's equity on a specific date are appropriately arranged and compiled. It indicates the economic resources, existing obligations and ownership of

I. Balance Sheet "

assets:

1. Monetary funds = cash + bank deposits + other monetary funds

2. Short-term investment = short-term investment-provision for short-term investment depreciation

3. Notes Receivable = Notes Receivable

4. Accounts receivable = Accounts receivable (borrowing) + Accounts receivable (borrowing)-"Accounts receivable" accrued for "bad debts"

5. Prepaid account = payable (borrowed) + prepaid account (borrowed)

6. Other receivables = Other receivables-"bad debt provision" accrued for "other receivables"

7. Inventory = various materials + commodities + work in progress + semi-finished products + packaging + low-value consumables + commissioned merchandise, etc. "

8. Inventory = materials + low-value consumables + inventory goods + commissioned processing materials + commissioned consignment goods + production costs, etc.-inventory depreciation reserve

9. Materials that use planned cost accounting and inventory products that use planned cost or selling price accounting should be added to the amount after adding or subtracting the difference in material cost and the difference between the purchase and sales of the product.

10. Expenses to be amortized = Expenses to be amortized [except for other amortized expenses with an amortization period of more than 1 year (excluding 1 year)]

11. Other current assets = other small companies' current assets other than the above current assets items

12. Long-term equity investment = long-term equity investment [Small enterprises do not plan to realise the full book value of various investment-type investments within 1 year (including 1 year)]

13. Long-term debt investment = long-term debt investment [Small businesses are not prepared to realize the debt balance of various debt-type investments within 1 year (including 1 year); long-term debt investment The "long-term debt investment due within 1 year" project under the asset category is reflected separately.]

14. Original price of fixed assets = fixed assets [fixed assets financed by lease, including their original prices]

15. Cumulative depreciation = Cumulative depreciation [Fixed leased fixed assets, including depreciation already included]

16. Engineering Supplies = Engineering Supplies

17. Fixed asset liquidation = fixed asset liquidation (borrowing) [Fixed asset liquidation account period is credit balance, fill in with -]

18. Intangible assets = intangible assets

19. Long-term deferred expenses = "Long-term deferred expenses" ending balance-"Amount to be amortized within 1 year (including 1 year)"

20. Other long-term assets = "other long-term assets of small businesses other than the above"

Liabilities:

1. Short-term borrowings = short-term borrowings

2. Notes payable = Notes payable

3. Accounts payable = Accounts payable (credit) + Prepaid accounts (credit)

4. Payable payable = Payable payable (credit) [End of the period of "Payable Payable" is debit balance, fill in with "-"]

5. Welfare payable = Welfare payable

6. Profit payable = profit payable

7. Tax payable = Tax payable (credit) [End of the "Tax payable" account is debit balance, fill in with "-"]

8. Other payables = other payables (credits) [Other payables account ending with debit balance, fill in with -]

9. Other payables = other payables

10. Accrued expenses = Accrued expenses (credit) [The "Accelerated Expenses" account is debit balance at the end of the period and should be combined and reflected in the "Amortized expenses" item]

11. Other current liabilities = "Other small liabilities other than the above current liabilities"

12. Long-term borrowing = long-term borrowing

13. Long-term payables = long-term payables

14. Accounts received in advance = Accounts receivable (credit) + Accounts received in advance (credit)

15. Other long-term liabilities = reflect the long-term liabilities of small enterprises other than the above long-term debt items, including the balance of small enterprises that have received donations and recorded in the "value of assets to be transferred" that have not been transferred to capital reserves. This project should be based on the relevant subjects

    (1) Take a look at the main content of the balance sheet, so that you will have a preliminary understanding of the total assets, liabilities, and shareholders' equity of an enterprise, as well as the composition and changes of its internal items. due to

    The balance sheet must be published and reported to various external groups (including stockholders, long-term and short-term creditors, and relevant government agencies) that have external economic interests. When the balance sheet lists the ending period of the previous period, it is called a "comparison balance sheet", and it can reflect the financial changes of the enterprise through the comparison of the previous period's assets and liabilities. A balance sheet compiled based on the balance sheets of several independent companies with closely related equity, called "

    Compared with the income statement, the balance sheet is different from:

    1. The income statement is prepared in accordance with "income-expense = profit", which reflects the changes in the results of the accounting entities' operating activities during a period.

    2. The balance sheet is prepared in accordance with "assets = liabilities + owner's equity", which reflects the distribution of all assets of the accounting entity at a certain point in time and its corresponding sources.

    3. As a result of the equation "income-expense = profit" will be reflected in both the income statement and the balance sheet. The connection between other doors can be expressed by the equation "asset = liability + owner's equity + income-expense".

    4. The "undistributed profit" of the owner's equity portion of the balance sheet is equal to the "undistributed profit at the beginning of the year" and "undistributed profit at the end of the year" equal to the profit and the profit distribution portion of the profit distribution table. The ending amount of the "undistributed profit" of the equity portion is equal to the sum of the undistributed profit at the beginning of the year and the net profit of the income statement.