A Balance Sheet is a financial statement which projects the financial position of a business at the end of the accounting period. It summarizes a company’s assets, liabilities, and Owners Equity.
In simple words, it is a document that will project the Net Worth of a business at the end of accounting year.
The three major parts of Balance Sheet; Assets, Liabilities and Equities, gives the owner an idea about what the company owns and what the company owes along with the shareholder’s invested capital.
Among the three main financial statements, it is considered to be the main Financial Statement.
As the name itself suggest the purpose of this document, it balances between Assets and Liabilities plus the owner’s/shareholder’s Equity.
A balance sheet is acceptable only when the both Assets are equal to liabilities and shareholder’s/owner’s Equity.
Thus, a balance sheet is prepared according to the following formula:
Assets = Liabilities + Shareholder’s/Owner’s Equity.
You can download a ready template from the link below:
Click here to Download Balance Sheet Excel Template.
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Good and simple explanation on what is a balance sheet. Excel file resources provided for free on your website is a great help for small users who cannot afford to use accounting software. Thanks
Can you describe shortly or send any link regarding how I can know briefly the following issues like: INTANGIBLE ASSETS, DEFERRED INCOME TAX, ACCRUED SALARIES AND WAGES, UNEARNED REVENUE, DEFERRED INCOME TAX.
https://www.accountingcoach.com/blog/accrued-payroll
https://www.investopedia.com/terms/d/deferredincometax.asp
https://www.investopedia.com/terms/u/unearnedrevenue.asp
https://www.investopedia.com/terms/i/intangibleasset.asp
A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods. For this reason, the company’s payable income tax may not equate to the total tax expense reported.
Accrued payroll includes wages, salaries, commissions, bonuses, and other payroll-related expenses that have been earned by a company’s employees, but have not yet been paid or recorded in the company’s general ledger accounts.
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a “prepayment” for goods or services that a person or company is expected to supply to the purchaser at a later date.
An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition, and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.
Source: Investopedia.com & AccountingCoach.com