You’d think this was a scene from The Crucible. But unfortunately, way duller.
It's when accountants set off to balance their books, checking that assets equals liabilities, that all the expenses they think they had...they actually had. And cash flow from operations really does equal the amounts they’re taking for D&A plus net income (and other stuff). So they do a pre-balancing check…balance. It’s a trial. A test. An adjudication of the numbers. Who is guilty? Who is innocent? Which number goes to "re-check jail" and which number is now free for the full auditable balance?
That’s what the court is asking, anyway, in a trial balance. And we rest our case.
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Finance: What is a Consolidated Balance ...3 Views
Finance a la shmoop what is a consolidated balance sheet? okay people
this is a tale of two balance sheets it was the best of times right here and all [Lemonade stand balance sheet appears]
that cash no debt,, yeah and it was the worst of times and pretty much the
opposite and then one magical mergy day the two companies possessing these
two divergent balance sheets decided to you know merge it was a lovely ceremony [Bride and groom holding hands]
the bride wore white the groom stepped on the glass so then the balance sheets
were consolidated that is they were merged or combined or fully brought
together liabilities plus liabilities assets plus assets so the few dollars in
cash here in the worst of times balance sheet
well that was tacked on to the cash in the best of times balance sheet and the
same happened with long term liabilities and short and eventually after the
wedding night was you know consummated these two balance sheets had merged and [Man and girl standing by their lemonade stands]
consolidated and looked like this and that's what happens when companies merge
everything including their balance sheets consolidate let's hope they
generate lots of tiny cash flows and credits in the future....Mazel Tov
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What is a balance sheet? A balance sheet is a financial document that public corporations are required to use. It shows their assets and liabilitie...