LearningCat: Balance Sheet (Statement of Financial Position)
Understanding Current and Non-Current Assets in the Balance Sheet
In the world of finance and accounting, a balance sheet provides an essential snapshot of a company’s financial health. Among the most important components of the balance sheet are the assets, which are classified into two main categories: current assets and non-current assets. These classifications help businesses, investors, and analysts understand how a company’s resources […]
Shareholder’s Equity
The three main parts of a company’s financial statement are its assets, liabilities, and shareholders’ equity. Every one of these elements is crucial for assessing a company’s financial health, which helps investors assess the long-term sustainability of the business. For a broad understanding, the following is an explanation of shareholder equity, including its components and […]
Liabilities (Non-Current and Current)
In relation to financial accounting, liability can be described as a financial commitment of the company to the creditors. One common issue for small business owners is accounts payable, sometimes referred to as money owed to suppliers. The balance sheet, a crucial financial document that displays a company’s assets and liabilities, is created by accountants […]
Formats of Balance Sheets
Financial statements are represented by balance sheets, which are essential tools in financial reporting because they show a snapshot of an organisation’s financial condition and summarise its assets, liabilities, and equity at a given time. The Indian financial system offers several formats of balance sheets that are customised for various purposes, such as increasing transparency, […]