Posts Tagged ‘balance’
Companies listed companies to file financial reports three commonly used:
1. Balance
2. Profit and loss account
3. Cash flow statement
In general, all three are part of quarterly and annual accounts. Let’s talk about the balance.
The album includes what is owned (assets), what is owed (liabilities) and what he is something more (equity). Remember, the record shows that the financial situation of the company at some point.
Assets are things that a term of more than 1 year. Your current account is an example of the assets. There are usually five categories of assets:
1. Cash and cash equivalents
2. The short-term investments
3. Debtors
4. Stocks
5. Other current assets (ie work in progress)
The fixed assets include property, namely real estate, intangible assets, assets (ie patents) investment (ie a partnership). They are items that are designed to last for more than one year.
Current liabilities payable within one year, such as electricity bills or VAT. We can group short-term debt in five categories, including:
1. Accounts Payable (monthly bills, invoices, etc.)
2. Short-term borrowings (including meeting payroll)
3. Taxes payable
4. Deferred taxes (an accounting procedure)
5. Other current liabilities
Long-term debt owed to more than one year, such as bank loans
Shares. In simple terms, equity is total assets minus total liabilities. It is part of the company equity. There are three parts of the capital:
1. Shares – a low value
2. Paid-up capital – a share value accounting
3. Retained profit share over the years in terms of gains or losses.
Analysis of financial statements is not an easy task. All careers are made to do so. This is a process for the soundness and stability of a company to determine. All parts of the statement are important and all parts must be studied to make sound investment decisions.