{"id":12893,"date":"2023-01-30T08:00:00","date_gmt":"2023-01-30T08:00:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=12893"},"modified":"2023-01-30T18:59:48","modified_gmt":"2023-01-30T18:59:48","slug":"accounting-balance-sheet","status":"publish","type":"post","link":"https:\/\/businessyield.com\/finance-accounting\/accounting-balance-sheet\/","title":{"rendered":"Accounting balance sheet explained: samples, templates, examples and definition","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Accounting balance sheet, what is it used for, how to make a balance sheet. And also, balance sheet format, simple balance sheet example, balance sheet template, balance sheet formula, and balance sheet PDF.<\/p>\n\n\n\n
An accounting balance sheet of a business or organization or company is that part of the financial statement that contains details of the assets, liabilities, equity capital, and also total debt of the business.<\/p>\n\n\n\n
It\u2019s safe to say that balance sheets are like snapshots of the financial position of a company at a particular period of time. Most times it is calculated after every quarter, six months to a year of the beginning of the financial year.<\/p>\n\n\n\n
The main contents of the balance sheet are the assets and liabilities. What are the assets? “Assets” are those resources that are owned by the business. They can appear in two forms: fixed assets and non-fixed assets.<\/p>\n\n\n\n
While liabilities are debts or obligations a company owes or is indebted to They are in form of current and non-current liabilities.<\/p>\n\n\n\n
However, these two are not the only content of the balance sheet as another important content includes the owners\u2019 equity or shareholder. In writing a balance sheet you should know that assets and liabilities are always equal to the owners\u2019 equity. It is called the book value of a company. For a balance sheet to be able to show its true results and meaning both the assets and liabilities should tally (assets=liabilities + equity).<\/p>\n\n\n\n
The balance sheet is a financial statement that contains the basis of the company\u2019s return. And, as well, evaluates its capital structure as well.<\/p>\n\n\n\n
They are several uses of an accounting balance sheet and they include:<\/p>\n\n\n\n
Making your balance sheet count means you should determine the date and period the balance is representing. However, reporting day is always the final day in an accounting year when the assets and liabilities are. And, also the equity of a company are been reported. Although some publicly traded companies report on a quarterly basis. When that is the case the reporting date will be the final date of the quarter such as March 31, June 30, September 30, and December 31.<\/p>\n\n\n\n
Companies that make their financial statement reports annually. Will always report on the 31 of December.<\/p>\n\n\n\n
Analysts prefer splitting assets into two forms for their better understanding as well as easy identification of their various sources. After the identification of your reporting date, you will need to ensure your assets are also tallied to that same date; it will also be required for their final analysis.<\/p>\n\n\n\n
Assets are of two forms, namely. Fixed and non-fixed assets are classified in terms of individual line items and total assets.<\/p>\n\n\n\n
Knowledge of your liabilities is one thing arranging them into both line items and totals is another thing. Either way for liability to count in a balance sheet, it should be properly stated as well as applied in the correct manner.<\/p>\n\n\n\n
These liabilities should be sub-totaled and then totaled together to get an accurate result.<\/p>\n\n\n\n