Simple Other Investments Balance Sheet
Youll often encounter catch-all line items on the balance sheet simply labeled other Sometimes the company will provide disclosures in the footnotes about whats included but other times it wont.
Other investments balance sheet. On the balance sheet the first type of investment is a current asset and the last two types are long-term noncurrent investments. The following are the main accounts we need to cover when projecting balance sheet line items. As explained in the chapter the purchasers level of ownership of the investee company determines whether the investment is accounted for by the cost method or the equity method.
Cash and cash equivalents. The first long-term asset Investments will include amounts such as the following. There is no specific requirement for the classifications to be included in the balance sheet.
A fundamental element is that the Balance Sheet balances. The balance sheet is divided into two parts that based on the following equation must equal each other or balance each other out. Cash in the bank inventory accounts receivable and investments all go on the balance sheet as assets.
Property that is in the process of being sold. Here is the long-term or noncurrent asset section from our sample balance sheets. Elements of a Balance Sheet.
Investments in other companies. Company liabilities go on the other side of the equals sign. The balance sheet information can be used to calculate financial ratios that give investors a general outlook for the company.
The balance sheet is an equation. The main formula behind a balance sheet is. On one side of the equals sign is your companys total assets.