Write a miniminuns of 200 word about the role of the balance sheet as one of the financial statements.

Comment on some significant characteristics of the balance sheet.

Who is interested in the information?

What kind of information does the balance sheet convey to users?

Part 2

Review the background material for the second module before attempting the case below in order to answer a series of questions about the balance sheet for ABC Company shown below. Start with the accounting equation and pay attention to definitions of assets, liabilities, and equity.

ABC

Balance Sheet

Dec. 31, 20xx

Assets Liabilities

Current assets Current liabilities

Cash $92,000 Accounts payable $18,000

Account receivable 21,000 Interest payable 8,000

Interest Receivable 1,000

Inventory 30,000 Total current liabilities

Total current assets $144,00 Total current liabilities $26,000

Long-term assets Long-term liabilities

Equipment (net of depreciation) $128,000 Note payable 90,000

Total long-term assets $128,000 Total long-term liabilities $ 90,000

Equity

Common Stock 10,000

Paid-in-capital 50,000

Retained earnings 96,000

Total equity $ 156,000

Total assets $ 272,000 Total liabilities and equity $ 272,000