The balance Sheet
Definition of
'Balance Sheet'
A financial
statement that summarizes a company's assets, liabilities
and shareholders' equity at a specific point in time. These
three balance sheet segments give investors an idea as to what the company owns
and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
Investopedia explains
'Balance Sheet'
It's called a balance sheet because the
two sides balance out. This makes sense: a company has to pay for all the
things it has (assets) by either borrowing money (liabilities) or getting it
from shareholders (shareholders' equity).
Each of the three segments of the balance sheet will have many accounts within it that document the value of each. Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt. The exact accounts on a balance sheet will differ by company and by industry, as there is no one set template that accurately accommodates for the differences between different types of businesses.
Each of the three segments of the balance sheet will have many accounts within it that document the value of each. Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt. The exact accounts on a balance sheet will differ by company and by industry, as there is no one set template that accurately accommodates for the differences between different types of businesses.
Opinion
Balance is part of the creation of financial information in an accounting. Assets in the balance sheet described which consists of (cash, receivables, equipment, and other income) while dipasiva consists of (debt, and capital owners). So in the absence of a balance in pembutan financial statements, the financial end of the reporting companies will not run properly
Read more: http://www.investopedia.com/terms/b/balancesheet.asp#ixzz1ta3jYlar
Balance is part of the creation of financial information in an accounting. Assets in the balance sheet described which consists of (cash, receivables, equipment, and other income) while dipasiva consists of (debt, and capital owners). So in the absence of a balance in pembutan financial statements, the financial end of the reporting companies will not run properly
Read more: http://www.investopedia.com/terms/b/balancesheet.asp#ixzz1ta3jYlar
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