As we have explained before a balance Sheet is a summary of a company's assets, liabilities and shareholders' equity at a certain point in time. Balance Sheet informs the inventors of what the company owns, owes and how much the shareholders have invested in the company.
The one of the differences between a balance sheet and an income statement is that balance sheet reflects a specific point in time and not a period of time like income statement. For example, if the balance sheet carries the date 1st of Jun. it means that all the transactions recorded on that balance sheet are pertaining to the 1st of Jun.
The main component of a balance sheet is Asset.
We are going to detail out what are the things that must be listed under Assets:
Company's cars, cash and all the supplies that the company has in hand are listed under Asset, because basically assets are the resources of the company. Account receivables also are considered as assets.
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