Introduction to financial statements balance sheet forms
The balance sheet, after accounting, is condensed into a statement based on the static corporate situation on a specific date. In addition to internal debugging, business direction, and error prevention, its report function also allows all readers to understand the company's operating status in the shortest possible time.The balance sheet is a very important financial statement in accounting, and its most important function is to reflect the operating status of the enterprise.
As far as procedures are concerned, the balance sheet is the end of the bookkeeping and accounting procedures. It is the final result and report after recording entries, postings and trial adjustments. In terms of nature, the balance sheet shows the comparative relationship between the assets, liabilities and shareholders' equity of an enterprise or company, and accurately reflects the company's operating status.
In terms of the basic components of the statement, the balance sheet mainly includes the assets part of the equation on the left side of the statement, and the liabilities and shareholders' equity part of the equation on the right side of the statement. As for the front-end work, if it is recorded completely in accordance with accounting principles and goes through the correct journal entry or transfer trial calculation process, the total amount of the left and right sides of the balance sheet will inevitably be exactly the same. In the final analysis, this formula is the total amount of assets = the total amount of liabilities + the total amount of shareholders’ equity.
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