Balance sheet

A record is a quick picture of financial situation of a company at a specific time period. Business activities fall into two distinct groups that are reported by an accountant. They are lucrative activities, which includes sales and expenses. It can also be called the operating activities. There are also funding and activities which include securing the money debt and equity capital investment, capital sources accruing to these sources, making profit distributions owners, making investments in assets and eventually get rid of the assets.

Benefit from the activities reported in the income statement. financing and investing activities lie in the statement of cash flows.In other words, two different financial statements are prepared for the two types of transactions.La statement of cash flow reports also increases or decreases of profit for the year as opposed to the amount of profits that are shown in the income tax money.

The balance is different statements of income and cash flows that report, as he says, cash and outgoing cash income. The balance sheet represents balances, amounts or active company, liabilities and equity owners at a moment in time. The balance of the term has different meanings at different times. As used in the balance of the term, it refers to the balance of the two opposite sides of a company, the total assets on one side and the total liability of the other.However, the balance of an account, such as asset, liability, revenue and expenditure accounts means the amount of the account after registration increases and decreases in the account, as your account balance.Accountants can prepare a balance sheet as a manager of the demande.Mais anytime they are generally prepared at the end of each month, quarter and the year it is always ready to the close of business the last day of the benefit period.