Balance Sheet
Softbyte’s balance sheet reports the assets, liabilities, and owner’s equity at a specific
date (in Softbyte’s case, September 30, 2010). The company prepares the
Not every company uses December 31 as the accounting year-end. Some companies
whose year-ends differ from December 31 are General Mills, May 27; Walt Disney
Productions, September 30; and Dunkin’ Donuts Inc., October 31. Why do companies choose
the particular year-ends that they do? Many choose to end the accounting year when inventory
or operations are at a low. Compiling accounting information requires much time and
effort by managers, so companies would rather do it when they aren’t as busy operating the
business. Also, inventory is easier and less costly to count when it is low.
Softbyte’s balance sheet reports the assets, liabilities, and owner’s equity at a specific
date (in Softbyte’s case, September 30, 2010). The company prepares the
Not every company uses December 31 as the accounting year-end. Some companies
whose year-ends differ from December 31 are General Mills, May 27; Walt Disney
Productions, September 30; and Dunkin’ Donuts Inc., October 31. Why do companies choose
the particular year-ends that they do? Many choose to end the accounting year when inventory
or operations are at a low. Compiling accounting information requires much time and
effort by managers, so companies would rather do it when they aren’t as busy operating the
business. Also, inventory is easier and less costly to count when it is low.
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