A balance sheet reflects the financial status of the an association at a specific point in time. It lists the association's assets and liabilities, and the difference between them, i.e., the association's equity.
ASSETS
- Cash. Petty cash, checking accounts, savings accounts, etc.
- Assessments Receivable. Dues and special assessments owed to the association as of the date of the report.
- Fixed Assets. Property acquired by the association with a useful life greater than one year and of significant cost.
- Prepaid Expenses. Payments of expenses for future periods, such as insurance premiums.
LIABILITIES
- Accounts Payable. Expenses incurred but not yet paid.
- Prepaid Assessments. Dues or assessments that have been paid in advance by an owner.
- Income Taxes Payable. Unpaid taxes.
FUND BALANCES (also known as members' equity or retained earnings)
- Replacement Fund. Amounts set aside for future repairs and replacements.
- Operating Fund. Accumulated earnings or losses from the current and prior years.
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