What are Balance Sheet Formats?

Balance Sheet Formats

Share This...

Balance Sheet Formats

There are two common formats for presenting balance sheets: the account format and the report format. Both formats display the same information but organize it differently.

  • Account format: In the account format, the balance sheet is structured like a T-account, with assets listed on the left side and liabilities and shareholders’ equity listed on the right side. Assets are further classified into current and non-current assets, while liabilities are classified into current and non-current liabilities. The account format visually highlights the fundamental accounting equation: Assets = Liabilities + Shareholders’ Equity.
  • Report format: In the report format, the balance sheet is presented vertically, with assets listed at the top, followed by liabilities, and then shareholders’ equity. Like the account format, assets and liabilities are separated into current and non-current categories. The report format is a more linear presentation and is often considered easier to read.

Both formats provide the same financial information about a company’s financial position at a specific point in time. The choice of format depends on the company’s preferences and the requirements of its stakeholders.

Example of Balance Sheet Formats

Below is an example of a simplified balance sheet for a small business:

ABC Company
Balance Sheet
As of December 31, 20XX
AssetsLiabilities and Owner’s Equity
Current AssetsCurrent Liabilities
Cash$25,000Accounts payable
Accounts receivable15,000Short-term debt
Total Current Assets60,000Total Current Liabilities
Non-Current AssetsNon-Current Liabilities
Property and equipment75,000Long-term debt
Total Non-Current Assets75,000Total Non-Current Liabilities
Total Assets135,000Total Liabilities
Owner’s Equity
Owner’s capital
Total Liabilities and Owner’s Equity135,000

In this example, ABC Company’s total assets amount to $135,000, and its total liabilities equal $45,000. The owner’s equity is $90,000. The balance sheet demonstrates that the company’s assets are equal to the sum of its liabilities and owner’s equity, as required by the accounting equation.

Other Posts You'll Like...

Want to Pass as Fast as Possible?

(and avoid failing sections?)

Watch one of our free "Study Hacks" trainings for a free walkthrough of the SuperfastCPA study methods that have helped so many candidates pass their sections faster and avoid failing scores...