Sample Balance Sheet

Cash: A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers.


Petty Cash: A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.

Accounts Receivable Net: The combined amount of the debit balance in the current asset account Accounts Receivable and the credit balance in the contra asset account Allowance for Doubtful Accounts.

Inventory: A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold. The inventory of a manufacturer should report the cost of its raw materials, work-in-process, and finished goods. The cost of inventory should include all costs necessary to acquire the items and to get them ready for sale.

Supplies: A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account.

Doubtful Account: Name given to an account that records the sums whose collection looks uncertain. Such accounts are termed bad debts and are usually written off against the profit of the firm as expense.


Liabilities: A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services.

Asset: A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.