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Balance sheet

Balance sheet

A balance sheet is a quick picture of the financial situation of an undertaking in a period of time. Business activities are divided into two distinct groups that are reported by an accountant. They are profitable activities, including sales and costs. It may also be called operational activities. There are also activities for financing and investments which include securing money from sources of capital and financing of the capital, to return these sources of capital, making the distributions of profits to the owners, make investments in fixed capital and finally dispose of the assets.

Gainful activities have been reported in the account of profits and losses; financing and investment activities are found in the statement of cash flows. In other words, are two different financial statements for the two different types of transactions. The statement of cash flow also increased the cash of the reports or decrease of the profit in the year in contrast to the amount of profits which is recorded in the profit and loss account.

The balance sheet is different from the statements of income and cash flows which report, as it is said, cash income and your cash out. Balance sheet shows balances, or amounts, or a society active, passive and fairness at a moment in time. The balance of Word has different meanings at different times. As it is used in the balance of the period, it refers to the balance of the two opposite sides of a company, total assets and total liabilities on the other. However, the balance of an account, such as assets, liabilities, income and expenditure accounts, refers to the amount on the account after registering increases and account, like the balance of your bank account decreases. Accountants can prepare a review of any time as a manager of the application. But they are usually prepared at the end of each month, quarter and year. Always ready to the close of trading on the last day of the benefit period.

Balance sheet - Internet Business Online News


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