Assets Included
To master the theory and accounting practice, it is essential to learn and understand the main accounting. One of the most important is the balance, the essence of as described below.
Concept
Balance is one of the three main financial statements, including, addition to the income statement of cash flow statement. This statement reflects the basic accounting equation, where assets = Liabilities + Equity. This means that the balance sheet includes the assets, liabilities and capital and reflects the structure of the asset at the particular moment in the structure of the media these financial assets are financed by the media, or through loans.
Named after this statement, it is clear that the total value assets equals total liabilities and equity.
Includes
Given the structure of balance, this statement is to provide specifications of the main categories of assets, liabilities and equity for users of the same order to comment on the state financial institution and take appropriate decisions. The following items are included:
- Assets: items to be consumed in operations of the company in less than a year. cash, receivables, inventories
- Long-term asset items to be used by the company over a period of one year
- Total Assets: short and long term elements
- Current liabilities: amounts to be repaid to creditors within a year or less
- Long-Term Liabilities: amounts to be repaid to creditors a longer period years
- Total liabilities: short and long term elements
- Equity: all the money belonging to the shareholders including the capital (amount invested) and retained earnings (amounts accrued but not yet distributed as dividends)
- Total Liabilities and capital: the sum of loans and equity funds.
Therefore, these elements must be included in the balance to reflect the company's financial situation to date and indicate in particular, liquidity, ie the company's ability to pay their bills on time.
If you want more detailed understanding of accounting, you can easily and comfortably learn accounting terms at home and explore accounting basic supported practical examples. Why wait? Start learning accounting basic now.
Trainz 2010
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