how do report form and account form balance sheets differ
Balance sheets are also sometimes referred to as statements of financial position or statements of financial condition. Balance sheets are typically presented in two different forms. In the report form, asset accounts are listed first, with the liability and owners' equity accounts listed in sequential order directly below the assets. In the account form, the balance sheet is organized in a horizontal manner, with the asset accounts listed on the left side and the liabilities and owners' equity accounts listed on the right side. The term balance sheet originates from this latter form: when the left and right sides have been completed, they should sum to the same dollar amountsâin other words, they should balance.