Question

mnemonics to remember vertical format of balance sheet




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Answer 1

Balance Sheet Names

Learn the interchangeable names for balance sheets. Many accountants favor at least two different names for the same statement. When you hear the name "statement of financial position" or "statement of financial condition," understand that these are also balance sheets by different names. Exactly the same information, often displayed in identical formats, appears in all three statements, regardless of their titles.

Balance Sheet Components

All balance sheets comprise your company's assets, liabilities and owners' equity. The common acronym to spur your memory is ALE -- just like the adult beverage of the same name.