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

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.

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.

For if one Ounce of Silver will buy, i.e. is of equal value to one Bushel of Wheat, two Ounces of Silver will buy two Bushels of the same Wheat, i.e. has double the value. (The Avalon Project, 2015) ” The passage speaks for itself by showing that “silver” or any other form of money should have an assigned value. If the value is not continuous and does not remain what it is worth, then the money will soon become

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,

2. It is important for financial managers to understand the concept of the time value of money. There are a few reasons for this. The first is that financial planners deal with future cash flows. These include things like interest-bearing investments, but also the future value of accounts that their customers will have. It is imperative that financial planners have a good sense of how their strategies will affect their customers, and

* 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

a) Capital - Since non current assets/stocks will increase in money value, the same quantities of assets must be financed by increasing amounts of capital.

In the situation that an exporter is untrustworthy about the ability of the importer’s payment under the international sale contract, the mechanism to reduce risk and fear is a letter of credit which the exporter will require the importer to arrange for the cost. A bank has an obligation under a letter of credit to pay an exporter the cost of commodities shipped by the exporter to the importer. The risk of the importer unsucceed to pay the contract cost can be reduced by the letter of credit. It is an assurance by a bank of instant or future payment against specified documents on terms that the bank will be reimbursement by the buyer. A letter of credit is often issued from a bank in the exporter’s country. If the particularised documents are presented, the bank or the issuer have to pay without question.

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