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What is balance sheet.

Year end balance sheet. The balance sheet is created to show the assets liabilities and equity of a company on a specific day of the year. Balance sheet is part of final accounts prepared by a business firm to know its financial position on a particular date for a particular periodbalance sheet shows the total liabilities and total assets of a business firm on a particular date. 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.

Choose the date for the balance sheet. The balance sheet shows the financial status of an organisation at a particular instant in time normally at the end of a reporting period such as a financial year half year or quarter. Balance sheet accounts are one of two types of general ledger accountsincome statement accounts make up the other typebalance sheet accounts are used to sort and store transactions involving assets liabilities and owners or stockholders equity.

Who prepares balance sheet. The first section of the balance sheet gives a detailed list of a companys assets including long term assets such as real estate and machinery current assets anything that can easily be converted to cash in less than a year and cash. Just as the bank asked you to put together a balance sheet to evaluate your credit worthiness the government requires publicly traded companies to put together a balance sheet several times a year for their shareholders.

The second section goes over the companys liabilities or what it owes others. This is always an important section for investors to read. Describes the recommended year end closing procedures for general ledger in microsoft dynamics gp.

In financial accounting a balance sheet or statement of financial position is a summary of the financial balances of an individual or organization whether it be a sole proprietorship a business partnership a corporation private limited company or other organization such as government or not for profit entity.

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