Balance sheet concepts, Accounting Basics

THE BALANCE SHEET CONCEPTS

According to Howard, a Balance Sheet might be definite as - 'a statement which reports the principles owned by the enterprise and the assert of the creditors and owners next to these properties'.

The Balance Sheet is a declaration that is ready typically on the last day of the accounting year, showing the financial situation of the anxiety as on that date. It comprises of a list of possessions liabilities and capital. An asset is any right or thing that is owned by a business. Assets comprise land, buildings, tools and something else a business owns that can be known significance in money provisions for the intention of financial reporting. To obtain its assets, a business may have to get money from a variety of sources in accumulation to its owners (shareholders) or from retained profits. The various amounts of money payable by a business are called its liabilities.  To offer extra information to the user, assets and liabilities are typically described in the balance sheet as:

- Current: those due to be repaid (Current liabilities) or transformed into cash within 12 months of the balance sheet date (Current Assets).

- Long-term: those due to be repaid (Long term liabilities) or transformed into cash other than 12 months after the balance sheet date (Fixed Assets).

Posted Date: 10/15/2012 5:30:39 AM | Location : United States







Related Discussions:- Balance sheet concepts, Assignment Help, Ask Question on Balance sheet concepts, Get Answer, Expert's Help, Balance sheet concepts Discussions

Write discussion on Balance sheet concepts
Your posts are moderated
Related Questions
Q. What is Merchandise inventory? Merchandise inventory is the cost of goods on hand in addition to available for sale at any given time. To determine the cost of goods sold in

Q. Explain Accounting entity concept? Business entity concept (or accounting entity concept). Data assemble in an accounting system relates to a specific business unit or entit

is exploration cost for mining companies regarded as assets or expense?

Q. Explain Merchandising companies? Merchandising companies buy goods that are ready for sale and then sell them to customers. Merchandising companies comprise clothing stores,

on april-1,2005,raghu started a business of selling steel pipes and angles.he invested cash of Rs.50,00,000 & opened a current a/c with bank for Rs.20,00,000.He took loan from ICIC

kind of information you would want to put on social media

Q. Describe about Fixed Assets? Fixed Assets can't be quickly turned into cash without interfering with business operations.Fixed assets comprise buildings, land, machinery, fu

Question 1: Briefly explain the following costs terms: Variable costs and fixed costs Semi- variable costs and semi-fixed costs Past costs and future costs.

Suppose you want to have $5,000 saved at the end of five years. The bank will pay 2% interest on your money. How much would you have to deposit today to have the $5,000 you want

What are the components or materials used by Accounts receivable departments? Ans) Accounts Receivable department is very vital department of the company. The responsibilities o