Orange polka dot crib sheets
As with the income statement, the balance sheet can also be summarized in a simple equation that highlights the structure of the document. This equation is, assets are equal to liabilities plus owner's equity. Unlike income statements, which have many alternative names, the balance sheet is quite literal in its definition. Defining Balance Sheet structure and contents. Explaining how firms prepare the Balance Sheet at accounting cycle end, during the trial balance period, and its role n financial reporting. How Balance Sheet categories create the firm's asset structure, capital structure, financial structure, and level of leverage. Balance Sheet Structure. Assets are arranged on the left-hand side and the liabilities and shareholders’ equity would be on the right-hand side. However, in most of cases, companies put the assets first and then they set up liabilities and at the bottom shareholders’ equity. The Balance Sheet of a Bank: Liabilities and Assets Structure! Balance sheet of a bank is of great importance for understanding the sources of funds it possesses and the uses to which these funds are put. As is well known, a balance sheet of an institution indicates its liabilities and assets. In this article we will discuss about the structure of balance of payments account. The balance of payments account of a country is constructed on the principle of double-entry bookkeeping. Each transaction is entered on the credit and debit side of the balance sheet.