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-   -   Financial statements (https://www.askmehelpdesk.com/showthread.php?t=66829)

  • Feb 26, 2007, 10:33 PM
    mzj30
    Financial statements
    Why don't the formal financial statements contain debit or credit column?
  • Feb 27, 2007, 03:06 PM
    KongTheKonqueror
    Because they are a summary of the balances in the accounts. All the debits and credits in an account are totaled to calculate the value to be put on the financial statements.
  • Feb 28, 2007, 02:31 AM
    CaptainForest
    Because it will make the statements look weird.

    To understand a financial statement, you need to know what the normal balances are of accounts.

    Assets are debits with a few exceptions.

    Liabilities and Equity are credits with a few exceptions.

    Revenues – credits
    Expenses - debits

    That is, when you look at cash, 700, you should know that is a debit balance. If it was in fact a credit balance, it would read, (700), so therefore, you could recognize it as a credit balance.

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