Difference between revisions of "Balance sheet"

From CNM Wiki
Jump to: navigation, search
Line 1: Line 1:
[[Balance sheet]] (alternatively known as [[statement of financial position]]; hereinafter, the ''Statement'') is a financial statement, as of a particular date, that shows the amount of assets owned by an organization as well as the amount of claims ([[liabilities]] and [[owner's equity]]) against these assets.
+
[[Balance sheet]] (alternatively known as [[statement of financial position]]; hereinafter, the ''Statement'') is a [[financial report]], as of a particular date, that shows the amount of assets owned by a [[legal entity]] as well as the amount of claims (both [[liabilities]] and [[owner's equity]]) against these assets. A [[balance sheet]] shows the owners, managers, and authorized stakeholders how much [[owner's equity]] is in the business, how many [[assets]] the business owns, and what the business owes in [[liabilities]]. The balance sheet falls in line with the [[accounting equation]].
  
  

Revision as of 16:00, 15 December 2018

Balance sheet (alternatively known as statement of financial position; hereinafter, the Statement) is a financial report, as of a particular date, that shows the amount of assets owned by a legal entity as well as the amount of claims (both liabilities and owner's equity) against these assets. A balance sheet shows the owners, managers, and authorized stakeholders how much owner's equity is in the business, how many assets the business owns, and what the business owes in liabilities. The balance sheet falls in line with the accounting equation.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Balance sheet (also known as statement of financial position). A financial statement, as of a particular date, that shows the amount of assets owned by an organization as well as the amount of claims (liabilities and owner's equity) against these assets.

Related concepts

Related coursework