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In a combined statement of financial position the liabilities and net assets section why are total liabilities and unrestricted net assets added together?
Wiki User
∙ 16y ago
Because Assets = Liabilities + Equity. (Net Assets is equity ... with a fancy name and broken into components.) And just to clarify:
1. It's Total Liabilities + Total Net Assets - not just unrestricted net assets, unless you're using a prescribed form that deviates from GAAP. 2. This is regardless of the statement being combined / consolidated, etc. Assets = Liabilities + Net Assets (Equity).... keep it simple and you woun't get confused!
Wiki User
∙ 16y ago
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What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
What is journal entry in merger in transferee company?
Debit combined assetsCredit combined liabilities
What is journal entry to combine company assets?
Debit combined assetsCredit combined liabilities
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
What is materiality and inmateriality in an audit?
Materiality is the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. While that the relevant financial statement bases and presumptions on the effect of combined misstatements or omissions that would be considered Immaterial. It does not affect the financial statement.
A combined financial statement of a parent company and its subsidiaries is called?
a consolidated financial statement
What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
A combined statement of a parent company and its subsidiary is called?
a consolidated financial statement
What is journal entry to combine company assets?
Debit combined assetsCredit combined liabilities
What is journal entry in merger in transferee company?
Debit combined assetsCredit combined liabilities
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
How do you write a financial future for a business plan?
it is called a "proforma." it looks like an income statement covering 5 yrs, 1-3 yrs, by the year and last 2, combined
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
What is materiality and inmateriality in an audit?
Materiality is the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. While that the relevant financial statement bases and presumptions on the effect of combined misstatements or omissions that would be considered Immaterial. It does not affect the financial statement.
What is a financial statement?
it is combined statement of parent company and subsidary company
Is telephone utilities?
Telephone Expense could be included under Utilities Expense for Financial Statement purposes. However, both telephone and gas/electric are usually substantial enough to warrant their own accounts, along with Other Utilities (water, sewer, etc) - the three accounts being combined as Utilities Expense on the Income Statement.
What is the difference between trial balance and balance sheet?
The trial balance is an internal document-it stays in the accounting department. It is a listing of all of the accounts in the general ledger (balance sheet accounts and income statement accounts) and their respective balances as of a specified point in time, such as June 30, 2006. The purpose of the trial balance is to document that the total amount of account balances with debit balances is equal to the total of amount of account balances with credit balances. The balance sheet is a financial statement that reports the dollar amounts of assets, liabilities, and stockholders' equity at a specified point, such as June 30, 2006. Since it is a financial statement, it will be distributed outside of the accounting department. As a result, it should be prepared in accordance with generally accepted accounting principles. (Often the balance sheet accounts in the general ledger are summarized and combined so that the resulting balance sheet is only 20 - 30 lines in length.)trial balance consist of addition and subtraction of assets, liabilities and owner's equity. Meaning the additional and subtraction of unadjusted trial balance and adjustments
