Sample balance sheet

Define 5 of the 7 assets.
1- Cash: A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers
2- Petty cash: A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
3- Temporary investments: A current asset account which contains the amount of investments that can and will be sold in the near future.
4- Inventory: A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold.
5- Prepaid insurances: A current asset which indicates the cost of the insurance contract (premiums) that have been paid in advance.


In terms of accounts receivable what is a doubtful account?.
Name given to an account that records the sums (accounts) whose collection looks uncertain. Such accounts are termed 'bad debts' and are usually written off against the profit of the firm as expense. 


Look at each section (assets, liabilities, equity) in detail.
Assets: a single item of ownership having exchange value.
Liabilities: moneys owed; debts or pecuniary obligations.
Equity: something that is fair and just.


Explain the difference between assets, liabilities and equity.
Assets, liabilities and owners' equity are the three components that make up a company's balance sheet. The balance sheet, which shows a business's financial condition at any point, is based on this equation:

Assets = Liabilities + Owners' Equity

Briefly discuss the distinctive groupings under each section and explain why they exist. 
Assets 
cash
petty cash
temporary investments
accounts receivable - net
inventory
supplies
prepaid insurance

Liabilities
notes payable
accounts payable
wages payable
interest payable
warranty liability
unearned revenue

Stockholders equity
goodwill
trade names
common stock
retained earnings
treasury stock

Where are earnings shown on the balance sheet? What do earnings represent in terms of equity? 
retained earnings :A stockholders' equity account that generally reports the net income of a corporation from its inception until the balance sheet date less the dividends declared from its inception to the date of the balance sheet.