Petty cash is often a small amount of discretionary funds in the form of cash used for expenditures where it is not practical to make the disbursement by Check.
The most common way of accounting expenditures is to use the imprest system. The initial fund would be created by issuing a check for the desired amount. Usually $100 would be sufficient for most small business needs; however, larger businesses may have several thousand dollars in discretionary funds available as petty cash. The entry for this initial fund would be to debit Petty Cash and credit cash.
Added 12/30/2010:
In the United States, most financial statements report historical information; that is, they provide financial information about years that are over and done with, and that information might not be a good indicator of how well the firm will do in the future, especially if the firm is relatively new. Accordingly, financial statement users are expected to be sophisticated enough in accounting, finance and business to know how to analyze them.
Uses -> Checks for errors -> Summarizes the balances on accounts to be transferred to final accounts (Income Statement and Balance Sheet) Limitations -> Does not reveal certain errors like omission, complete reversal... etc.
Loan is on balance sheet
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
A balance sheet account is any item that is found on the financial statement known as the balance sheet. The figures reflected on the balance sheet, consist of the ending balance of the balance sheet account. After all the transactions are posted in the individual balance sheet account's "T" account (involving debits and credits), the ending balance is the amount found on the balance sheet.
grouping and marshalling in balance sheet grouping and marshalling in balance sheet
Yes in merchandiser balance sheet there is stock of items available in balance sheet while in services balance sheet there is no inventory item available.
Proforma balance sheet is a projected balance sheet to predict the future of business.
my balance sheet does not balance why?
balance sheet
EBIT is not show in balance sheet rather Earning after tax is shown in balance sheet.
Post balance sheet items are those items which arise after closing date of balance sheet that's why called post balance sheet items.
projected balance sheet method