Accounting-Balance Sheet

Balance Sheet 1. Purpose: The purpose of the balance rag is to strict out the financial position of a furrow at a cross point in time. 2. It contains a picnic shot of the additions, liabilities and equity position of the entity at a particular point in time. 3. Balance sheet refers to a description of financial position. Assets (Current/Non Current) 1. A resource controlled by the entity as a result of past events, and from which economic pull ins are judge to stream to the entity. 2. The main identifying characteristics of an asset are: 1) Expected future day economic benefit. 2) The business has exclusive right to control the benefit. 3) The benefit essential arise from some past transaction or event. 4) The asset must be capable of reliable meter in monetary terms. 3. Examples: Freehold premises , Machinery and equipment, Fixtures and fittings, Patents and trademarks, Debtors (Accounts receivable), Investment. 4. Current Assets ( within 12months) Examples: Cash, Inventory, Trade debtors, Pre-Payment 5. Non-Current Assets: Held for the purpose of generating wealth, quite a than for resale.

whitethorn be seen as the tools of the business. 6. Non-Current Assets Examples: Equipment, Land, Motor vehicles, Fixtures and Fittings, Liabilities (Current/Non Current) 1. A manifest pact of the entity arising from past events, the settlement of which is expected to result in an flight from the entity of resources embodying economic benefits. 2. Examples: Creditor s, Staff entitlements, Loans and other credi! t facilities, imprimatur viands and other social or moral obligations, proviso for employee bonuses or owners distribution. 3. Current Liabilities: Amounts due for repayment to outside parties within 12monthes of the assertion of financial position date. 4. Current Liabilities Examples: Accounts payable, Bank overdraft...If you deprivation to guide a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.