A Balance Sheet summarises a business’ financial position at a specific time, normally the end of an accounting period. Made up of three parts and presented in two sections as the name suggests each section must balance. It shows what assets and liabilities the business has as well as how it is funded.
Assets = Liabilities – Shareholder’s Equity
An asset is anything that a business owns that has a monetary value; examples of which include plant and machinery, stock, trade debtors and cash in the bank
A liability is something which a business owes to its creditors; examples of which include amounts due to suppliers, taxes, loans and hire purchase.
Shareholder’s Equity is the difference between the assets and liabilities and represents the net worth of the business.
Gwyneth Price lives in Wirral. She works as a financial adviser and takes
great pride in her work. She loves to
share her experience online through a series of blog articles and guest
postings. For more detailed information
about Pay as you go bookkeeper Wirral, The Local Accounts Department Service
Birkenhead, Financial management support and advice
Wirral, Part time managementacccountant Birkenhead she often sends friends to http://birkenhead.tfmcentre.co.uk .
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