Comments on: Balance Sheet Basics Part 1: What Is The Balance Sheet?

By: Mike

Mike — Tue, 01 Nov 2011 00:18:21 +0000

The assets are presented at their original cost on the Balance Sheet. Then you deduct some depreciation every year and the accumulated depreciation lowers the value of the assets a little more each year.

By: Linda Knight

Linda Knight — Mon, 17 Oct 2011 17:02:20 +0000

Under “Current Assets”, are the values for the vehicles, equipment, buildings and improvements estimates of value on the day of the balance sheet? Or are they valued at purchase price? I guess I am confused with how this figure interacts with the depreciation figure on the balance sheet.

By: Leni

Leni — Sun, 25 Apr 2010 12:26:30 +0000

A good introductory article to balance sheet basics. If your readers are looking for a sample balance sheet that they can copy, and adapt for their own use, juast like I did, then I found this one: http://www.smallbusinessfinancetips.com/sample-balance-sheet.html

By: admin

admin — Thu, 15 Oct 2009 19:18:04 +0000

Hi Sunny,
I don’t have that exact Balance Sheet in Excel but here is a link to a similar one that I just created.

http://www.fullcontactaccounting.com/wp-content/uploads/BalanceSheet.xls

I hope that this is useful for you! Please let me know if you have any other questions.

By: Sunny

Sunny — Thu, 15 Oct 2009 17:00:49 +0000

And this may not be the forum for the answer to this question, but

where would be the best place to learn to duplicate this balance sheet format in excel?

Please help! Quickbooks/Computer trouble– BIG PRESENTATION!

By: admin

admin — Sun, 04 Oct 2009 18:04:42 +0000

I assume you want a definition or explanation of these terms? If you wanted something else please let me know.

Net Assets – this is a term usually used in non-profits, but it is basically the same as net worth or shareholder’s equity. It is Assets – Liabilities.

Net Profit – This is what is left after you subtract all of your expenses from all of your revenue. It is commonly referred to as “the bottom Line” because it is the final figure on the Profit & Loss or Income Statement.

Net Loss – This is the same as net profit, but if you have more expenses than revenue you will have a net loss instead of net profit.

Gross Profit – This is revenue (or sales) minus Cost of Goods Sold. It is a term usually used for businesses that sell things (not service businesses). If you look at a Profit & Loss Report you will usually see Revenue or sales at the top, then Cost of Goods Sold is deducted to arrive at the Gross Profit. Then the other operating expenses of the business are deducted to arrive at the Net Profit or Net Loss.

I hope this is what you were looking for, if not please let me know!

By: ARSALAN

ARSALAN — Sun, 04 Oct 2009 11:25:04 +0000

i wana ask that , net asset , net profit , net loss and gross profit ?

By: Dawood

Dawood — Thu, 10 Sep 2009 17:44:40 +0000

To get a basic understanding of how accounting really works I’d advice the following article:

http://www.myhowtoos.com/en/at-work-howtoos/80-understanding-accounting-basics