Balance Sheet Equation
The Balance Sheet represents the following accounting equation:
ASSETS = LIABILITIES + EQUITY
• Assets: The assets displayed in the Balance Sheet represent the tangible and intangible economic resources of your organization.
• Liabilities: The liabilities displayed on the Balance Sheet represent the debts accumulated by your organization. Liabilities can take the form of general claims against the business, such as accounts payable, or documented claims, such as notes payable. Each liability is a claim against the resources of the organization. Many of the liabilities shown on the Balance Sheet are updated from other Denali modules.
• Equity: Equity is what is left over when all the assets are liquidated for book value and all liabilities are paid off at book value.
(Fund product only) The excess revenue over expense for the previous year is held in the Retained Fund Balance account that is specified in the
GL Set Up Funds window. Only the amounts from periods 1 through 12/13 (if you are running the report for the second year in your fiscal calendar) or 1 through 25/26 (if you are running the report for the third year in your fiscal calendar) will be stored in the respective Retained Fund Balance accounts.
Published date: 09/30/2021