Question

. The subject is: Balance Sheet. You need to present the definition, sections, simple-and classified format, related ratios, orders, and other concerns. You can add sample tables to visualize your thoughts. You should clearly mention what the importance of this financial statement as far as creditors and investors are concerned.

Answer 1

a balance sheet is a company financial statement that reports company asset, liability, and shareholder equity.at a specified period of time and represent maybe a year-end.

a balance sheet is one of the there's core financial statements,it represents the company and company financial position.

a standard balance sheet has three sections asset, liability, and shareholders equity. the main categories of assets are usually listed first, and typically in the order of liquidity.

in the balance sheet liabilities and assets are recorded in two different sections from , current and in-current.this section is made based on the liquidity of the asset and liability and to understand that fast for the user.

let,s look at an example of a balance sheet

company name

the balance sheet as of (year)

ASSETS	AMOUNT
current asset
cash	x
account receivable	x
total asset	x
fixed asset
land, building	x
total fixed asset	x
total asset	x
LIABILITIES
current liabilities
account payable	x
accrued expense	x
total current liabilities	x
long-term liability
loan	x
total long-tern debt	x
owners equity
retained earnings	x
common stock	x
total owners equity	x
total liabilities and owners equity	xx

every stakeholder of the organization is interested in the statement, starting from creditors and investors.diffrent people have different purposes from this statement.

creditors us the statement in order to decide whether they should lend money to the organization 0r not. they access the liquidity and interest cover of the business and credit report of the organization to get an idea.

investors are one of the main users of the statement .they use the statement to find the fair value of the organization to decider proper capital allocation the businesses. they look at the overall profitability, liquidity, and investor ratio to get an understanding.to get a conclusion they all use the statement report