Purpose Of The Spread Sheet

A balance sheet will allow one to map out their assets and liabilities for a given period. These periods should be no longer than a year apart. In understanding this data, one can make informed decisions regarding what they can borrow, how much money will need to be saved, and what can be invested. An income statement will present gains and losses in a given period.

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

Understanding the finances of a company is important but knowing the significance of the financial statements is crucial to the operations as well. Reviewing the statement of financial position, operating statement and statement of cash flows serve as a guidance to management and executives on the day-to-day activities of an organization (Finkler et al., 2013). For example, the statement of financial position (balance sheet) shows the assets and

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 balance sheet is one of the major and critical financial statements that show the financial position of the company. The balance sheets tell the user of the

This is the source of the value of the company to its stockholders and to the stock market analyst (Yahoo Finance, 2013). The Balance Sheet may also indicate a negative Shareholder Equity which means the shareholders are losing money. The Balance Sheet also illustrates the trends in borrowing the company has used in the last year. The long term debts that are listed on the balance sheet compared to assets may indicate a problem if the debts are called in by the loaner for some unforeseen reason. There are multiple methods or ratios for determining the future profitability of a company indicated by the line items on the balance sheet (Mertz.J., 2000).

Michael Arnow, was about how physicians can create a balance sheet, organize it, and interpret their balance sheet to understand the bottom line. It can be used to determine what your business is worth, sales, lending money, profitability, and if there is room for a raise. According to Arnow, “A balance sheet shows what your practice owns, what it owes, and what you have put in it based on your original costs.” It is usually listed by general accounting principles such as current assets, long-term assets, other assets, and total assets. Arnow states that is most common to review a balance sheet annually but if your practice is new or having problems of course it should be looked at more

As money is spent statements are updated to reflect the accounts affected by the spending. Managers use these financial statements, such as an income statement or balance sheet, to check the progress of plans and programs. Management uses the information provided by financial statements to monitor financial resources and activities. The income statement shows the results of the organization's operations over a specific period, such as revenues, expenses, and profit or loss. The balance sheet shows what the organization is worth (assets) at a particular point and the extent to which those assets were financed through debt (liabilities) or owner's investment (equity) (Bank of America, 2007).

A balance sheet is the most basic and essential financial statement for any organization. It contains the basic

* 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 of a company reflects exactly what a company owns and what it owes to others, making it a very important thing to be considered for stock investment.

A balance sheet lists assets, liabilities and equity of a business at a single point in

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

As outlined by Melicher & Norton (2013), the balance sheet is “a statement of a company’s financial position as of a particular date” (p. 358). While income statements demonstrate a company’s performance over a length of time, the balance sheet provides a “snapshot” of a firm’s revenues and expenses on a specified date. The most important values presented on a balance sheet are the values for liabilities, assets, and equity. Different types of assets and liabilities noted within a company’s balance sheet can reveal information about the company’s financial structure and plans for future operations. A balance sheet is “balanced” because every dollar listed as an asset must be financed by a dollar of liabilities. Major assets appear on the balance sheet in order of liquidity. Examples of assets included on this financial statement include cash (or cash equivalents), accounts receivable, inventories, and other fixed and long-term assets. The claims of creditors and owners are all the debts that the business owes to other parties. On the balance sheet,