ACCRUAL-BASED FINANCIAL STATEMENTS: CONSIDERATIONS OF THE BALANCE SHEET
Within a financial statement, the balance sheet should be classified, separating current assets and liabilities from long-term assets and liabilities. Current amounts include anything that is expected to be converted into cash within a year.
In reviewing the balance sheet, items to consider include:
- Whether all receivables are collectible
- Whether the value of inventory is overstated due to obsolescence
- Whether all amounts owed are reflected as liabilities
Davis & Hodgdon Associates CPAs has technical staff ready to assist you with the organization of your balance sheet! Call 802-878-1963 or visit www.dh-cpa.com for details.