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The balance sheet is always at some date, for example, end of year.
The assets can tell us:
- how much cash does the company hold
- does the company sell on account?
- how much inventory at year end?
- how much machinery/buildings/etc does the company have
- are those relatively old or new? (depending on the cumulative depreciation)
- etcetera
The liabilities and equity section tells us:
- the current liabilities: how much needs to be paid within 12 months
- long term liabilities: how much needs to (re)paid in the long run
- how much have the investors paid for their shares
- how much of profits are retained in the company (not paid as dividend)
- how much potential (future) losses the company can absorb with their equity
Wiki User
∙ 13y ago
Wiki User
∙ 14y ago1. Give five examples of economic decisions that are based on the accounting information?
2. identify typical users of financial reports and their interests (needs)?m
3. What are the components of each of the following financial statements?
· Income statement:
· Statement of cash flows
Balance sheet
4. Define each of the following: Assets - Liabilities - Owner's equity - Revenues - Expenses?
5. What is the difference between accounting income and cash flow? Which do we need to use when making decisions?
6. what are the two components of owner's equity( رأس المال (
7. What information does a balance sheet provide?
8. What information does an income statement provide?
9. Why do we need a statement of cash flows when we have balance sheets and income statements?
10. What information does a classified balance sheet provide that an unclassified
balance sheet does not?
11. What makes comparative financial statements more useful than those not presented in comparative format?
Wiki User
∙ 14y agoIt tells the reader about the financial health of a business company.
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What mean by Schedule Balance sheet?
A detailed balance sheet, which shows ledgers under groups, so here Schedule balance sheet helps all of us to view and print the balance sheet in detailed format.in other word schedule balance sheet is a balance sheet contain combined Asset class and liabilitiy class together under one group, and which shows ledgers under groups.
Do you have factor sheet answers?
Yes. Tell us one of the problems.
What is the good form balance sheet?
its good because it help us to know the weight of a things or anything
Where do you post general reserve in balance sheet?
US Generally Accepted Accounting Principles do not allow for any general reserve in the balance sheet. Reserves are recorded only for specific assets that may have declined in value, such as accounts receivable or inventory.
What type of business is this?
You don't tell us what "this" is.
How long is an A4 sheet of paper?
An A4 sheet measures 210 x 297 mm. An A4 sheet of paper is the more common business and school size paper in most of the world, including Europe, whereas the 8½ x 11 inch sheet of paper is the more common business size in the USA. A4 is a little taller and narrower than a US 8½ by 11 inch sheet.
What are the answers to math sheet lesson 7 Simplest Form of a Fraction?
We don't have access to math sheet lesson 7. Perhaps you could tell us some of the problems and we could show you how to solve them.
How you glue polystyrene sheet on simple plain roof?
Depends WHAT your "simple, plain roof" is made of -you neglected to tell us that important info.
Is Maxi Iglesias gay or bisexual?
none of our business, he'll tell us if he wants to
What is a yellow sheet?
A yellow sheet is US slang for a criminal record.
Who are the basic records used before preparing trading profit and loss accounts and balance sheet?
Basic records needed for preparing trading profit loss accounts and balancesheep is a trial balance.. A trial balance is the closing balances of each and every account entered in our ledger. Trading account shows us Gross profit while profit and loss account shows us net profit and in the end balance sheet shows us the Assets and Liabilities at the end of the financial year.. all direct expenses shown on trading accounts and direct income like sales shown in trading account while indirect exp and indirect income shown in p & L ac
How does net income effect the balance sheet?
Take your gross income (revenues) over the period in question, usually one year, and then subtract all the expenses you had in order to earn that income. This will bring you down to a net income...on the income statement. There is no net income on the balance sheet per se. You net income from the income statement hits the balance sheet when you close out the books for the year. Then it moves over to the retained earnings segment in the balance sheet.
