Functions of balance sheet, Accounting Basics

Assignment Help:

The basic functions of a balance sheet are:

1. It provides the financial place of a company on any given date

2. It provides the liquidity picture of the concern.

3. It provides the solvency position of the concern.

The basic components of a balance sheet are:

1298_components of balance sheet.png

Pro-forma of a Balance sheet is as follows:

1590_proforma of balance sheet.png

Balance sheet of ABC Ltd as on 31st December 2005


Related Discussions:- Functions of balance sheet

Define an accounting system, Q. Define an accounting system? Effects fr...

Q. Define an accounting system? Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to br

Explain benchmarking, Benchmarking A process by which a company reasse...

Benchmarking A process by which a company reassesses its established business practices by comparing them with the best practices of other organizations.  This process is desi

Audit Reports, Why it is important for independent auditor to be a member o...

Why it is important for independent auditor to be a member of a professional body?

What is federal unemployment tax, What is Federal unemployment tax Fed...

What is Federal unemployment tax Federal unemployment tax (FUTA) requires the payment of taxes to provide benefits for workers during periods of temporary unemployment. This

Journal entry, What are the golden rule of accounting how to pass journal e...

What are the golden rule of accounting how to pass journal entry when strating bussines what

Are mailing lists is prepaid or period expense?, Are mailing lists are cons...

Are mailing lists are considered as prepaid or period expens?

Angel, Angel Individual investors which are often called angels, make ...

Angel Individual investors which are often called angels, make capital investments in entrepreneurial ventures in return for equity (partial ownership) in the industry. These

Estimate interest rate and analysis market interest, Woodie Limited issues ...

Woodie Limited issues $5 million in convertible bonds on 1 July 2012. They are issued at the fair value and pay an interest rate of 4 percent. The interest is paid at the end of ea

A light truck is purchased on january 1 at a cost of $27, A light truck is ...

A light truck is purchased on January 1 at a cost of $27,000. It is expected to serve for eight years and have a salvage value of $3,000. Calculate the depreciation expense for t

Determine about the sales returns and allowances, Determine about the Sales...

Determine about the Sales returns and allowances Allowance results when a buyer decides to keep defective or damaged goods though at a reduction from the original price.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd