Accrual Balance Sheet Exercise – BOP – Critical Thinking 1
Accrual Balance Sheet Exercise:
Beginning of Period
Critical Thinking
Student Name: ___________________________________
Instructions: This is a simplified balance sheet and is based on example information. As
such it is incomplete and probably inaccurate in some respects. After completing the list
of assets and liabilities consider the balance sheet you have constructed in comparison to
one you would do for your business. Answer the following questions:
1. Can you identify any “holes” in the balance sheet? Are there any aspects of the
balance sheet that don’t make sense? Be as specific as possible in your
response.
2. Imagine you are a bank loan officer and a potential customer brings this balance
sheet in and is seeking a loan to buy another tractor. What questions does this
balance sheet prompt you to ask of your potential borrower?
