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Oregon Balance Sheet Notes Payable
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FAQ
The main purpose of the notes to the financial statements is to further clarify accounting procedures used by a company, as well as to divulge information that has occurred during and immediately after the close of the accounting period.
The financial statement prepared first is your income statement. As you know by now, the income statement breaks down all of your company's revenues and expenses. You need your income statement first because it gives you the necessary information to generate other financial statements.
The first note to the financial statements is usually a summary of the company's significant accounting policies for the use of estimates, revenue recognition, inventories, property and equipment, goodwill and other intangible assets, fair value measurement, discontinued operations, foreign currency translation,
Also known notes to financial statements, footnotes, notes to accounts are supporting information that is usually provided along with a company's final accounts or financial statements.
Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus, cash is always presented first, followed by marketable securities, then accounts receivable, then inventory, and then fixed assets.
Notes to the financial statements disclose the detailed assumptions made by accountants when preparing a company's: income statement, balance sheet, statement of changes of financial position or statement of retained earnings. The notes are essential to fully understanding these documents.
Also known notes to financial statements, footnotes, notes to accounts are supporting information that is usually provided along with a company's final accounts or financial statements.
What is the balance sheet order? The order of the balance sheet is as follows: Current Asset, Non-Current Assets, Current Liabilities, Non-Current Liabilites, Owner's Equity, Offsets on the Balance Sheet and also in the order of their liquidy, with the most liquid terms (those closest to cash) first.
These notes (or footnotes) inform of important accounting policies, company's commitments, breakdown of sales, breakdown of purchases, details of assets and liabilities, potential profits and losses, etc.
