What is balance sheet?

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Anonymous User asked 15-Nov-2017 in BUISNESS PROCESS by Anonymous User

What is balance sheet?

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Samuel Fernandes answered 15-Nov-2017 by Samuel Fernandes

It’s basically a accounting term, Balance Sheet is a sheet in which all the transaction of financial character of a corporation are been noted which incorporates assets, liabilities, equity capital, total debt, etc. at a degree in time. Record includes assets on one facet, and liabilities on the opposite. For the record to replicate true image, each heads (liabilities & assets) ought to tally (Assets = Liabilities + Equity).  

record is a lot of sort of a snap of the monetary position of a corporation at such as time, typically calculated once quarterly, six months or one year. Record has 2 main heads -assets and liabilities.  

Let's perceive all of them.What square measure assets?
Assets are those resources or things that the corporate owns. They’ll be divided into current additionally as non-current assets or future assets.
Liabilities  are  debts or obligations of a corporation. It’s the number that the corporate owes to its creditors. Liabilities is divided into current liabilities and future liabilities.
What is balance sheet?
Another necessary head within the record is stockholder or owner's equity. Assets square measure adequate to total liabilities and owners' equity. Owner's equity is employed once the corporate may be a sole proprietary and shareholders' equity is employed once the corporate may be a corporation. It’s additionally called value of the corporate.