Balance sheet concepts, Accounting Basics


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
what is accounting equation and introduction

A bank statement showed an overdraft of $750. A cheque issued in payment of rent for $570 had not been presented, and a cheque for $624 received was omitted from the statement. The

Q. Illustrating the recording of sales returns? Following are two instances illustrating the recording of sales returns in the Sales Returns and Allowances account - Suppose

Part 1 (a) Name and describe the three concepts that form the basis of double entry bookkeeping, and explain how they form the basis of double entry bookkeeping. (b) How doe

Q. A company would not acquire treasury stock a. in order to reissue shares to officers. b. as an asset investment. c. in order to increase trading of the company's stock. d. to ha

Your client, Hope, of Hope's Country Corner, is curious about two events will influence both taxable and financial income. The first event involves the purchase of pottery-making e

An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. 01.) True 02.) False True or Fals

Elaborate the consequences of non-compliance of each of the accounting concepts.

How do you round up to one decimal point using percentages? Example 0.207 Thanks

Calculate the amount of assets for Company