A balance sheet is an important financial statement prepared by a company at a specific period in regular interval to showcase its financial position.
A balance sheet is an important financial statement prepared by a company at a specific date on a regular basis to showcase its financial situation.
The balance sheet includes cash-flow statement, income & expense statement, asset and liability details. In short, it shows all transaction details.
A balance sheet is the main point interest for a shareholder, company advisor, business partner etc.
The Balance sheet abides by the following rule:
Assets = Liability + Shareholder’s Equity
There are two types of account in accounting system, one is balance sheet account which carries remain balance to the next year and another one is profit & loss account which becomes zero at the end of each & every year.
Balance Sheet Account: Balance sheet account includes three ledger accounts i.e. asset, liability, capital/Equity.