2006-10-24 12:38:56 · 4 answers · asked by audrey j 1 in Business & Finance ➔ Small Business
yes that is normal, as long as the assets equal liabilities and owners equity.
2006-10-24 15:40:27 · answer #1 · answered by PDADDY16 2 · 0⤊ 0⤋
This depends on the asset, liability or equity area. On the asset side, accumulated depreciation is always negative. It is known as a 'contra-asset' account. Cash is sometimes shown as a negative when an over draft is used, but other times the amount is moved to the liability section.
I am not aware of any additional 'normal' situations with negative assets.
On the Liabilities / Equity side The current portion of term debt is a negative in non-current liabilities and is offset with a positive in current liabilities. This represents the amount of a term debt to be repaid in the next year.
Sometimes, a payable, such as taxes payable, are in a negative (or debit balance) when the government owes you money. Sometimes this is moved to the asset side as a receivable. On an interim statement, it might be left as negative.
The most common negative on the balance is the current earnings in the equity part. If a company loses money, the current earnings are negative - thus reducing the equity position of the business.
I hope one of these situations clears up your question.
2006-10-25 15:32:19 · answer #2 · answered by Student T 2 · 0⤊ 0⤋
It is normal to show negative figures in the Balance Sheet but it will have adverse impact on the shareholders of the company.
2006-10-24 19:45:30 · answer #3 · answered by K.J.Haroon Basha 2 · 0⤊ 0⤋
Yes it means that the person doesn't have enough money in the bank. -$100 means that they owe the bank $100.
2006-10-24 19:46:53 · answer #4 · answered by Medical and Business Information 5 · 0⤊ 0⤋