Scribd
Upload
175 views2 pages

Understanding Balance Sheets Explained

The document defines a balance sheet as a statement that provides a snapshot of an organization's financial position at a particular point in time. It details the organization's assets, liabilities, and net assets. Assets are what the organization owns, liabilities are what it owes, and net assets represent the accumulated surplus or deficit. The balance sheet also indicates liquidity by showing cash on hand and upcoming cash from assets. It then provides two examples of balance sheets for a nonprofit theater organization.

Uploaded by

dohaqs123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
175 views2 pages

Understanding Balance Sheets Explained

The document defines a balance sheet as a statement that provides a snapshot of an organization's financial position at a particular point in time. It details the organization's assets, liabilities, and net assets. Assets are what the organization owns, liabilities are what it owes, and net assets represent the accumulated surplus or deficit. The balance sheet also indicates liquidity by showing cash on hand and upcoming cash from assets. It then provides two examples of balance sheets for a nonprofit theater organization.

Uploaded by

dohaqs123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The Balance Sheet (Also known as a “Statement of Financial Position”)

Sources:
https://nonprofitsassistancefund.docalytics.com/v/balance-sheet-cheat-sheet-2014
http://www.nonprofitfinancefund.org/sites/default/files/22-1_christopher_why-do-balance-sheets-matter1.pdf

Definition: A statement of the assets, liabilities, and capital of a business or other organization at a
particular point in time, detailing the balance of income and expenditure over the preceding period.

Overview: The balance sheet - also called the Statement of Financial Position - serves as a snapshot,
providing the most comprehensive picture of an organization's financial situation. It reports on an
organization's assets (what is owned) and liabilities (what is owed). The net assets (also called equity,
capital, retained earnings, or fund balance) represent the sum of all annual surpluses or deficits. The
balance sheet also indicates an organization's liquidity by communicating how much cash an
organization has at present and what assets will soon be available in the form of cash.

BALANCE SHEET EXAMPLE 1


BALANCE SHEET EXAMPLE 2

CIDER HILL PLAYERS


STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2009 AND 2008

ASSETS 2009 2008

CURRENT ASSETS
Cash $ 453,728 $ 492,511
Investments 144,616 144,113
Accounts receivable 9,121 2,400
Grants receivable 41,759 54,167
Prepaid expenses 1,874 8,743

Total current assets 651,098 701,934

PROPERTY AND EQUIPMENT


Equipment 33,794 38,363
Production sets, costumes 53,000 53,000
Leasehold improvements 15,082 15,082
Less: Accumulated depreciation (95,578) (100,120)

Property and equipment (PE), net 6,298 6,325

OTHER ASSETS
Security deposit 23,020 22,260
Total other assets 23,020 22,260

TOTAL ASSETS $ 680,416 $ 730,519

LIABILITIES AND NET ASSETS


CURRENT LIABILITIES
Accounts payable 662 5,012
Unearned revenue 5,222 31,600
Line of credit, payable 25,000 20,000
Total current liabilities 30,884 56,612

LONG-TERM LIABILITIES
Total liabilities 30,884 56,612

NET ASSETS
Unrestricted 548,667 491,840
Unrestricted, board designated 50,000 50,000
Temporarily restricted 50,865 132,067

Total net assets 649,532 673,907

TOTAL LIABILITIES $ 680,416 $ 730,519 NET ASSETS


NET ASSETS

You might also like