Accounting-Balance Sheet

counterbalance Sheet 1. Purpose: The conception of the balance sheet is to hard out the financial countersink of a business at a cross foreland in time. 2. It contains a grab shot of the additions, liabilities and equity fructify of the entity at a detail point in time. 3. Balance sheet refers to a description of financial position. Assets ( sure/Non Current) 1. A option controlled by the entity as a result of erstwhile(prenominal) events, and from which stinting benefits are expect to electric current to the entity. 2. The main identifying characteristics of an asset are: 1) Expected future sparing benefit. 2) The business has exclusive effective to control the benefit. 3) The benefit all-important(a) arise from some past transaction or event. 4) The asset must be receptive of reliable measurement 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, spate debtors, Pre-Payment 5. Non-Current Assets: Held for the purpose of generating wealth, rather than for resale.

may be seen as the tools of the business. 6. Non-Current Assets Examples: Equipment, Land, beat back vehicles, Fixtures and Fittings, Liabilities (Current/Non Current) 1. A present promise of the entity arising from past events, the settlement of which is expected to result in an fledge from the entity of resources embodying economic benefits. 2. Examples: Creditors, Staff entitlements, Loans and new(prenominal) credit facilities, Warranty fodder and other social or moral obligations, Provision for employee bonuses or owners distribution. 3. Current Liabilities: Amounts due for repayment to outside parties within 12monthes of the arrogance of financial position date. 4. Current Liabilities Examples: Accounts payable, Bank overdraft...If you want to glide by a full essay, fix it on our website: Orderessay

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