Deferred expenses are recorded as assets on a balance sheet. Accountants consider deferred expenses to be assets because they will provide the company some good or service at a later point in time.

Prepaid expenses are first recorded in the prepaid asset account on the balance sheet. The GAAP matching principle prevents expenses from being recorded on the income statement before they incur.

Insurance expense does not go on the balance sheet because it reflects a specific amount you have spent, rather than an asset or liability at a particular moment in time.

The balance sheet, comprising current assets, liabilities and owner's equity, offers a quick way to check the health of your business. Here's an overview.

A balance sheet is a financial report that provides a snapshot of a business’s position at a given point in time, including its assets (economic resources), its liabilities (debts or obligations ...

Accumulated depreciation is the total amount of depreciation expense recorded for an asset on a company's balance sheet. It is calculated by summing up the depreciation expense amounts for each ...

Take the time to strengthen your balance sheet to ensure you have the ability to get financial assistance from investors. Newsletters Games Share a News Tip. ... minus the company's expenses.

Though a balance sheet is intended to be a gateway to understanding a company's financial position, there are lots of places on one for valuable information to hide. Here's where to look.