Balance Sheet Guides
Last updated:
The balance sheet is where most accounting questions start: is this item current or non-current, is it an asset at all, and what journal entry puts it there? These guides answer those questions in plain English, with US GAAP first and IFRS alongside where the two differ.
Start here
- Statement of Financial Position | Balance Sheet Explained (GAAP vs IFRS): the balance sheet explained under US GAAP and IFRS, section by section.
- How to Read a Financial Statement Table: Nike Case Study: a walkthrough of reading real financial statements, using Nike's annual report as the example.
Current and non-current assets
- Is Inventory a Current Asset? Accounting Basics Explained (U.S. GAAP): why inventory is usually current, and when it is not.
- Is Equipment a Current Asset? U.S. GAAP vs IFRS Explained: why equipment is a non-current asset, from both the US GAAP and IFRS views.
- Is a Right-of-Use Asset Current or Non-Current? (ASC 842): where a lease's right-of-use asset sits under ASC 842 and IFRS 16.
Prepaid expenses, step by step
- Prepaid Expenses Current Asset: GAAP vs IFRS Treatment Explained: the main guide to how prepaid expenses are classified and treated.
- Is Prepaid Insurance a Current Asset? (Yes, With One Exception): a short answer with the one exception to know.
- Is Prepaid Rent an Asset? Yes, With Journal Entries: the answer plus the journal entries.
- Prepaid vs Accrued Expenses: GAAP and IFRS Treatment Explained: how the two differ and why they are easy to mix up.
Practice with journal entries
- How to Account for Rebates in Accounting (Journal Entries): debits and credits for rebates received and given.
Comparing US GAAP and IFRS? See the US GAAP vs IFRS guide. Looking for something to try? Browse the free tools.
