This shows cumulative totals for each revenue and expense account for the fiscal year to date. Revenue accounts indicate different sources of money coming in to Trent Radio. Expense accounts indicate money spent on things that maintain the activities of the organisation which are used up and therefore do not increase the value of the organisation. The Balance Sheet shows Assets, Liabilities and Equity. Assets are things that are owned by the organisation which increase its value.
Liabilities are amounts owed to other people which decrease the value of the organisation.
Equity is what the organisation is worth. Once a receivable amount is received, the receivable account is decreased and the cash account is increased. This more fully reflects how much money the organisation has. Prepaid Expenses - this is money paid in advance for an expense which has not yet been incurred. When the money is paid the cash account decreases and this account increases.