ERIC Number: ED252248
Record Type: RIE
Publication Date: 1984-Nov
Reference Count: 0
Know Your Bottom Line: The Control of Your Auxiliaries.
Stumph, Wayne J.
Designed to help college administrators read and understand accounting statements, this paper provides tips about danger signals that may be evident in financial statements and that may call for speedy action. The first statement examined is a balance sheet; i.e., a summation of all of the possessions and debts of a business or entity, which shows the equity or ownership interest as the differences between the possessions and debts. After commenting on the importance of periodically creating and comparing balance sheets, the paper examines a balance sheet for a hypothetical college food service unit line by line. Comments are made on areas needing special attention, including, in relation to assets, cash account, petty cash, investments, accounts receivable, inventory, total current assets, fixed assets, equipment and fixtures, depreciation allowance, and total assets; and, with respect to liabilities, accounts payable, accrued liabilities, total current liability, fund balance, and total liabilities/net worth. The next section of the paper examines the income statement of a hypothetical college bookstore, pointing to areas indicating whether the bookstore is profitable or being subsidized, and whether it is efficient and protected by proper accounting controls. This section examines sales revenue and expenses and problems revealed in the statement. (HB)
Publication Type: Reports - Descriptive; Opinion Papers; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the Annual Meeting of the National Association of College Auxiliary Services (Chicago, IL, November 7-10, 1984).