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In other words the balance sheet illustrates your businesss net worth.

Balance sheet date. Updated june 18 2018. A balance sheet often states that it is prepared as of a specific date referred to as the balance sheet date. Events after the balance sheet date are significant financial events that occur after the date of the balance sheet but prior to the date that the financial statements are issued.

Pro features log in. The date usually the end of a financial or accounting year when a balance sheet is drawn up. The balance sheet date is a date as of which the information in a statement of financial position is stated.

Accounting cycle explanations balance sheet also known as the statement of financial position is a financial statement that shows the assets liabilities and owners equity of a business at a particular date. Thus events that occur up to that date are critical in arriving at an entitys financial results and the financial position. The balance sheet date is the pivotal date at which the financial position of an entity is determined and reported.

A balance sheet is a statement of the financial position of a business which states the assets liabilities and owners equity at a particular point in time. By itself it cannot give a sense of the trends that are playing out over a longer period. For example a companys balance sheet that has the heading of december 31 2012 might not be finalized and distributed until february 1 2013.

The main purpose of preparing a balance sheet is to disclose the financial position of a business enterprise at a given date. The balance sheet is a snapshot representing the state of a companys finances at a moment in time.

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