Реферат: Double Entry Types of Balance Sheet

The balance sheet gives you this view of your equity so that you can see what equity would be if all the cash that is currently committed were already spent. As you review this figure, bear in mind the following:

1. Some commitments are firmer than others. For example, a salary commitment for a Classified Civil Service employee will certainly be used, unless the person leaves or reduces work hours. On the other hand, if you have a blanket purchase order, you might have established it for a maximum amount, planning to spend that amount only if absolutely necessary. The first encumbrance is "firm," the second less so. Consequently, you must know your operation well in order to interpret "equity with encumbrances."

2. Depending on the type of fund, monies are received at different points during the year. For example, Endowment Income and Expense funds receive the major portion of their funding in July. Earnings funds, on the other hand, usually receive revenues at regular intervals during the year. Thus an Endowment Income and Expense fund that has negative "equity with encumbrances" in the early part of the fiscal year is probably of concern, whereas an Earnings fund can begin the year with negative "equity less encumbrances" because it will earn money during the year to offset the commitment