January marks the end of the old year and the start of the new, an chance to review what’s happened in the past and an opportunity to learn from it for the future. In accounting, this is the essence of the granddaddy of financial statements, the balance sheet.
Our Balance Sheet Cramlet™ was one of our first, and continues to be popular among students. Most business textbooks contain a balance sheet, but this one is far more useful. It can be found in the Financial Statements chapter.
The balance sheet is broken up into four tabbed sections — assets, liabilities, equity, and summary. Every tab, section header, and line item can be rolled over with your mouse to find in-depth descriptions that help put things in context.
I suggest you start your review by rolling over each of the tabs, as their explanations tell the story of the company’s financial status. Within each tab, the section headers (current assets, fixed assets, etc.) give a definition of the items within that section. If you want a printout, the Statement button will always bring you back to the original full screen.
The balance sheet is a core financial statement featured in most business courses. This Cramlet™ has helped other students understand it, and it can help you as well.
No accounting for taste,