The balance sheet is a kind of indicator of accounting

Accounting is an important and compulsory measure for each organization. One of its main functions is to draw up a balance sheet. This allows not only to determine the possibilities of distribution of the enterprise's property, but also graphically illustrates its cost, as well as to find out the amount of available debt, the amount of profit received as a result of the production and sale of products. It should be noted that such calculations can be performed for each period under consideration, since all data for this purpose are recorded in special accounting books and are described in detail in the reporting documentation.

Two components

The balance is traditionally presented in the form of two fundamental categories. It is important to indicate the fact that numerically both these parts must necessarily be equal to each other. If this is not the case, it is advisable to consider two options: either during calculations and calculations, the accountant made a mistake, or there is a badly disguised so-called black accounting. In this case, a solution for the first situation can be considered a banal, but simple enough and prosaic thorough verification of calculations. In the event that the second situation takes place, then employees of all known state structures will tell what and how to do the unlucky bookkeeper.

The active balance is a kind of indicator of where and how the invested funds are directed. In turn, the second category (also called liabilities) illustrates the processes by which the sources of financing of the organization are formed and distributed. Thus, in general, accounting consists of the following main items: the asset of the balance is the current and non-current assets; The liability is represented in the form of capital and its reserves and liabilities of all kinds. For a more accurate and complete understanding of this issue, you should familiarize yourself with each of these financial transactions articles in more detail.

Non-current assets

As it was mentioned earlier, the balance asset is estimated on the basis of its two components. The group in question includes fixed assets, intangible assets, unfinished construction results and all kinds of long-term type liabilities . They are the most important for forecasting and planning processes, because they represent a kind of support for each organization.

Revolving Funds

It is important to remember that the asset of the balance is also circulating assets. They traditionally consist of receivables, financial investments and stocks. It should be noted that in accounting calculations there is also a value called "net assets in the balance sheet". It is understood as a real valuation of all property owned by the enterprise.

Other articles

According to modern scientists, the balance asset is not only the two above categories. This should also include items that are difficult to consider as property. For example, VAT and future expenses.