TCO 2 Describe the balance sheet and compute total assets ba

(TCO 2) Describe the balance sheet and compute total assets based on the following data $50,000 10,000 4,000 25,000 Cash Accounts receivable Accounts payable Equipment HTML Editorn Paragraph were afraid that the

Solution

Answer

--- is prepared for the balance on a particular date [eg “…as at 31 Dec, 2017],

---shows balances of various permanent account.

---shows financial stability of the organisation.

---shows the positions of various assets and its obligation to pay off debts.

---contains classified information with respect to Assets, Liabilities and Equities.

= 50000 + 10000 + 25000

= $ 85,000

TOTAL ASSETS = $ 85,000