1. Describe the Purpose a Balance Sheet

A balance sheet gives an overall picture of a company's financial situation by showing the total assets of a business, including liabilities plus equity. Current assets can include cash, accounts receivable, inventory and prepayments for insurance. The balance sheet is used by investors to get an idea of what the shareholders have invested, including

* A balance sheet is snapshot of the financials for that organization (with assets on the left and liabilities on the right side) for that particular date that was requested

The Balance Sheet is another type of financial statement used by a company to see a snapshot of the company's financial position at a particular point in time. It lists the value of the company's assets followed by its liabilities. A balance sheet can be summed up by a simple equation:

The balance sheet is considered a point in time statement because it elaborates on the current position of the organization. Based on the balance sheet, the organization is able to make an educated decision to know if it’s the best time to pursue additional business. The balance sheet is usually reviewed by a creditor when searching for new opportunities. Basically, the creditor determines the company’s position by subtracting the company 's liabilities from the assets. Liabilities are the debts and obligations a facility, regardless of the magnitude of the business. Once the liabilities have been subtracted from the assets, a stakeholder 's equity is determined.

The statement of financial position and the balance sheet is statement that reviews the assets, liabilities, and equities that a business is holding at a particular moment in time. These elements: assets, liabilities, and equities; allows the reader of the financial statement to be able to identify what the company owns, owes, and has invested into the company.

The balance sheet is created to present the distribution and flow of funds by categorizing values by assets, liabilities, both current and long-term, and owners or the shareholders equity. The current assets in a balance sheet indicates the amount the company can liquidate in a very short amount of time. The Liabilities include debts and payables, while the equity totals the company’s worth by calculating the

Explain the nature of balance sheets. A balance sheet is one of the major financial statements that a company prepares so that its investors and managers have visibility into the company’s financial position. The balance sheet details a company's resources and obligations. The major parts include assets, liabilities and shareholders' or owners’ equity. The balance sheet is run for

Balance Sheet reports the financial position (economic resources and sources of financing) of an accounting entity at a point in time.

As the value of money began to drop in 1694, Locke published Further Considerations Concerning Raising the Value of Money. Within this document, Locke writes about how the money that is within the economy must have a specific worth. Locke comments on the value of money, “Silver is the Measure of Commerce by its quantity, which is the Measure also of its intrinsick value. If one grain of Silver has an intrinsick value in it, two grains of Silver have double that intinsick value, and three grains treble, and so on proportionably. This we have daily Experience of, in common buying and selling.

The balance sheet is a summary of a person or organization's assets, liabilities and Ownership equity on a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition and indicates what the firms owns and how theses assets are financed in the form of liabilities or ownership interest (Williams, Jan R 2008). Intent to answer how much did the firm make or lose and what is a measure of its worth? (Block, Hirt 2005).

The financial statement mostly used by managers within an organization is the balance sheet. The balance sheet lays out all of the company’s assets and liabilities at a certain point in time (Chron, 2013). Management can determine the company’s available cash and if adjustments are needed to the business practices. The balance sheet simply shows the difference between the company’s assets and liabilities, which equals the net worth of the business. Managers must review the balance sheet to determine how the company can repay creditors, finance operations, and if purchases can be made at that time.

Several companies use the balance sheet to make sound business decisions. The balance sheet is like a quantitative summary of a company’s financial condition at a specific point in time, including the assets, liabilities,

The balance sheet is one of four types of financial statements that are analyzed to determine the well being of the firm. The balance sheet is also known as the Statement of Financial Position. The balance sheet provides the detailed information needed to determine the financial condition of the firm on a specific date, which is usually December 31. The balance sheet depicts what the firm owns (assets), owes (liabilities), and how much capital (shareholders’ equity) it has. “The name, balance sheet, is derived from the fact that these accounts must always be in balance. Assets

The balance sheet is also one of the annual accounts and main financial statements. It contains figures of business’ total assets, capital and liabilities at a particular time. The balance sheet is in two parts, one containing the details of

2. The importer applies to his bank requesting and authorizing the bank to open a L/C in favour of the exporter and pay bills drawn by the exporter under the L/C.