Financial Position

Financial Position

  • Defined as the status of a business, as represented by the assets, liabilities, and owner’s equity
  • Allows for information based decisions about a company
  • Allows people to truly see how well a company is doing
  • It is a big picture of the company
Assets
  • Anything that is owned that has a dollar value
    • House
    • Car
    • Appliances
    • Furniture
Liabilities
  • A debit of an individual, business, or other organization
  • Money value that you owe to people
    • Credit Card
    • Mortgage
Owner’s Equity
  • The difference between the total assets and total liabilities of a business
  • Other terms include capital, or net worth
Calculating Financial Position
Step 1:  List and total all assets
Step 2:  List and total all liabilities
Step 3:  Calculate the difference between total assets and liabilities (owner’s equity)

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Topics 1) What is Accounting? 2) Financial Position 3) Balance Sheet 4) GAAP 5) Equation Analysis Sheet 6) Analyzing a Transaction 7) Ledger Account 8) Trial Balance 9) Expanded Ledger 10) Income Statement 11) New GAAP 12) Report Form Balance Sheet 13) The Journal 14) Source Documents 15) GAAP for Journal 16) Sales Tax 17) Posting 18) Comparative Income Statement 19) Classified Balance Sheet 20) Adjustments 21) Closing Procedures 22) Depreciation 23) Merchandise Business
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