Balance Sheets - Research Article from Encyclopedia of Management

This encyclopedia article consists of approximately 10 pages of information about Balance Sheets.
This section contains 2,790 words
(approx. 10 pages at 300 words per page)
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Balance Sheets

The balance sheet, also known as the statement of financial position, is a snapshot of a company's financial condition at a single point in time. It presents a summary listing of a company's assets, liabilities, and owners' equity. The balance sheet is prepared as of the last day of the business year. Therefore, it corresponds to the end of the time period covered by the income statement.

To understand the balance sheet, its purpose, and its contents, several accounting concepts need to be examined. First of all, the balance sheet represents the accounting equation for a company. The accounting equation is a mathematical expression that states the following:
Assets = Liabilities + Owners' Equity

Stated more fully, this means that the dollar total of the assets equals the dollar total of the liabilities plus the dollar total of the owners' equity...

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This section contains 2,790 words
(approx. 10 pages at 300 words per page)
Buy the Balance Sheets Encyclopedia Article
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Balance Sheets from Gale. ©2005-2006 Thomson Gale, a part of the Thomson Corporation. All rights reserved.
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