Statement of Financial Position (Balance Sheet)
- Asset accounts usually have a debit balance; they're increased by debits and decreased by credits.
- Liability and equity accounts normally have a credit balance; they're increased by credits and decreased by debits.
Balance sheet accounts always have a balance, which is rarely zero. When a new asset or liability is created, it starts with a beginning balance. Transactions either add or subtract from the beginning balance to create an ending balance. This becomes the beginning balance for the next month.
Usually, the Balance Sheet has three columns: the first for all regular asset and liability accounts, the second for all subtotal accounts, and the third contains the total assets and total liabilities/equity accounts.
Accounting Equations and Terms
| Result | Calculation |
|---|---|
| Retained Earnings (on Balance Sheet) | = Total Income - Expenses |
| Assets | = Liabilities + Equity |
Using the Balance Sheet
On the Transactions tab, click . You can view items related to the Statement of Financial Position, like the balance sheet accounts which include all of the asset, liability, and equity accounts.
By default, the current open month displays. To view a statement for a different month, enter the date you want to view in the Month of Report field and click Recalculate. Click Set Options to change the layout of the statement. To show open transactions in the report totals, select Include Totals of Transactions Not Posted.
Click an amount to view a list of transactions and details, when applicable. Click a total to view the account name, number, and type. You can export this summary report to Excel or OpenOffice.
Watch & Learn
Learn how to customize the layout of the Statement of Financial Position, also known as the Balance Sheet. 6 min 3 sec
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