ABSTRACT
This chapter introduces the various parts of the balance sheet. It discusses various formats used in establishing balance sheets and illustrates the establishment of a simple balance sheet. The balance sheet shows the balance between the assets of an organization with its liabilities and owners’ equity. Accounts receivable are open accounts carried in the guest and city ledgers by the customers. An allowance for doubtful accounts should be subtracted from receivables. Different from the receivables described under current assets, non-current receivables are those accounts that are not expected to be collected within the year. Investments in other companies or in property or plant not connected with the daily operations of the property are equally considered as a separate asset category. The detail of the owners’ equity section in the balance sheet is a function of the type of organization in which the business is operating.
