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![Page 1: Understanding the Balance Sheet - San Francisco State ... › sites › default › files › forms › ... · Understanding the Balance Sheet Presented by San Francisco State University](https://reader034.vdocuments.net/reader034/viewer/2022042402/5f11cf73e4418d0d5e0a40ff/html5/thumbnails/1.jpg)
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Understanding the Balance Sheet
Presented by
San Francisco State University
Auxiliary Business Services
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Overviewaka Statement of Financial Position
• Assets Current
Long-Term (Fixed)
• Liabilities Current
Long-Term
• Net Assets Reserves
• A word about Funds
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AssetsWhat they are composed of…
• Cash
• What’s owed to you
• What you own
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Assets - currentCASH
These are funds that are readily available to spend
• Checking account
• Change fund cash on hand to make change for cash sales
• Savings
• Investments LAIF
Marketable Securities
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Assets - currentWhat’s Owed to you
• Accounts Receivable what your customers have agreed to pay you
• Advances (Cash & Travel)
Funds advanced to employees that haven’t yet been redeemed with receipts & Travel Claim
• Pre-paid Expenses money paid out for goods & services that
you haven’t received yet
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Assets – long termWhat you own
Has enduring value beyond one year and a value in excess of $5,000
• Fixed Assets Buildings & Improvements Furniture & EquipmentAssets are depreciated over time to reflect their
declining value
• Less Accumulated Depreciation
• Book Value
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LiabilitiesCurrent (payable within one year)
• Accounts Payable (AP)
• Refundable Deposits
• Deferred Income
• Accrued vacation
• Copier Lease/Purchase
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LiabilitiesAccounts Payable (AP)
Can only be for goods or services already received but not yet paid for…
• Accrued PO’s & Contracts
• Payroll Taxes
• Vendor Invoices
• Unclaimed checks
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LiabilitiesRefundable Deposits
Deposits paid to you that you will refund to the payee when and if pre-specified conditions are met
• Security deposits
• Childcare deposits
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LiabilitiesDeferred Income
Money received for goods and services you normally provide but have not completed as of the report date
• Tuition received in advance
• Rent received in advance
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LiabilitiesAccrued Vacation
• Employees are awarded vacation time annually
• They have the option to use it or accumulate for the future
• What they don’t use is accrued. It’s a liability because the employer must pay it to them eventually – either as time off or as a cash settlement.
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LiabilitiesLong-Term Debt
Portion of debt that will continue past current fiscal year:
• Bond repayment
• Large Notes Payable
• Lease/Purchase Agreements
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Net Assets
Assets less Liabilities
• What you have and is owed to you (Assets)
• Less what you owe to other (Liabilities)= What’s left over and what remains (Net Assets)
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ReservesNet Assets ‘designated’ for future use
This is a discretionary device used to guarantee that money will be available for select purposes
• Scholarship Endowments
• Contingency
• Debt Service
• Capital Replacement
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FundsMoney grouped by where it comes from and how it
can be used
• Unrestricted Source: Student Fees & program revenue
(your own money) Use: Internally defined
• Temporarily Restricted Source: Grants & Contracts Use: Externally defined
• Campus Programs Funds held on behalf of others
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The End
Thank You!