The balance sheet is one of the main economic statements second-handed by accountants and business owners. The balance sheet is also referred to as the statement of financial position. The balance sheet shows a company’s economic situation at the end of a particular date.
A balance sheet is a financial statement that sum up a company’s assets, liabilities and shareholders’ impartiality at a precise point in time.
Balance Sheet of a business is one of the most important of its financial statements. It is also known as the Financial Position Statement of a business. In simple words balance sheet can be explained as the snapshot of a business position in terms
Depreciation is one of the basic accounting terms that is applied to the degree of wear and tear that happens to a firm’s assets. With the help of depreciation accountants can calculate whether it is time to replace the assets or not. It also
A trail balance sheet is one of the most important financial documents of the double entry system. Trial balance of a business can be done at any time of the financial period to keep the accounts fair and transparent. Some of the businesses run
A balance sheet is a financial statement of a business that can be use for internal and external purposes. The preparation of both internal and external balance sheets is for different uses and they are intended for completely different audiences. For example internal balance
Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as
Distinction/Difference Between Trial Balance and Balance Sheet: Learning Objectives: What is the difference between trial balance and balance sheet? The following are the points of distinction/difference between trial balance and balance sheet: Trial Balance Balance Sheet ► It is a list of balance extracted
Difference Between Statement of Affairs and Balance Sheet: Learning Objectives: What is the difference between statement of affairs and balance sheet? As real or property accounts are not maintained and also because a capital account does not exist under the single entry system, a
Difference Between Receipts and Payments Account and Income and Expenditure Account: Learning Objectives: What is the difference between receipt and payment account and income and expenditure account? Receipts & Payment Account Income & Expenditure Account 1 It is a summary of the cash book
Cost Classifications on Financial Statements: Learning Objectives of this Article: Prepare a schedule of cost of goods manufactured. Prepare income statement including a schedule of cost of goods sold. Merchandising and manufacturing firms, both prepare financial statement reports for creditors, stockholders, and others to
Definition and Explanation of Cash Book: Learning Objectives: Define and explain cash book. How a cash book is balanced. Prepare a format of the simple cash book. Cash book is a book of original entry in which transactions relating only to cash receipts and
Final Accounts: Learning Objectives: What is trading and profit and loss account? What is the the difference between trial balance and balance sheet? Prepare trading and profit and loss account and balance sheet. Explain the preparations of final account Having proved the arithmetical accuracy
Definition and Explanation of Accounting: Learning Objectives: Define and explain accounting. What are the main functions of accounting? Accounting is defined as “the art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results
Definition and Explanation of Single Entry System: Learning Objectives: Define and explain single entry system of bookkeeping. What are limitations of single entry system of accounting It is difficult to define single entry system because, in fact, there exists no system like single entry
Trading account format and accounting trading and profit and loss account examples in balance sheet. Different solved problems in trading profit and loss a/c in final accounts format for carriage outwards. Learning Objectives: Prepare trading and profit and loss account and balance sheet. Example