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.

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