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balance sheet is the financial statement prepared at the end of the year.it is very useful to a business concern to know its financial position of the firm and also comparison.
balance sheet decides the shareholders entering and exit.it is useful to managers to prepare reports and improve the business by proper decision making
What else can I help you with?
What is the use of a balance sheet?
it helps to show the financial state of the business
What is a pro forma balance sheet?
Proforma balance sheet is a projected balance sheet to predict the future of business.
What is cash on a balance sheet?
Cash is most liquid item in asset side of balance sheet and cash is that amount which is in hand for use for expenses of business.
On the trial balance sheet AR is what?
AR related to accounts receivable in trial balance sheet of business.
Balance sheet of hypothetical business entity?
Prepare a Balance sheet for hypothetical company
In what profession may someone use a balance sheet?
A person in the profession of business finance will use a balance sheet. This area may include investment bankers, realtors, creditors, and other accounting positions within the world of business finance.
What is amalgamation of Balance sheet?
Amalgamation of balance sheet means to join together the balance sheets of two or more same size business or join the same size business as one business.
Importance of balance sheet?
The balance sheet shows what the business has(assets) and what the business owes against those assets(liabilities). The difference between the assets and the liabilities shows the net worth of the business. The net worth of the business is important in that it is a measurement of the time the business is expected to stay in financial power. The balance sheet also provides the business with information on how best it is able to pay its debts. Underwriters also use the information in the balance sheet(working capital) to assess the business' ability to finance its operations. The balance sheet assists the managers of businesses in making decisions regarding purchasing of equipments for the business. Business managers depend on the balance sheet to analyze whether buying certain equipment on debt is the right move for the business at that time. Business managers need the balance sheet so as to decide the best source of credit for the business at that time. The balance sheet shows the accounting equation in a physical representation. The balance sheet also shows the owner's equity for example, it shows the value of the stock and the number of shares outstanding. The balance sheet is also used by the government agencies to make sure that the business is complying with the set laws. It also provides information to any potential lenders of the business on the credit worthiness of the business.
Where does stationary go on a balance sheet in business studies?
Stationery, as an accounting item, does not appear on a business Balance Sheet. The Balance Sheet is reserved for assets and liabilities. The Income Statement reflects income and expenses and because Stationery is an expense item it will appear on the Income Statement and not the Balance Sheet.
What is equity in balance sheet?
Equity in balance sheet is that account in which owner has invested money in business and business is liable to it's owner to return.
Where does cash go on a balance sheet?
Cash is an asset of business and it is shown under current asset of business at asset side of balance sheet.
Where does cash go on balance sheet?
Cash is an asset of business and it is shown under current asset of business at asset side of balance sheet.
