1 ASSET : Total valuable things that company owned
2 LIABILITY : Money borrowed from debtors
3 EQUITY: Money received from shareholders and previous years earnings
The relationship between these three things are:
ASSET= LIABILITY+ EQUITY
*A company use the money borrowed from creditors (LIABILITY) and money received from shareholders and previous years earnings(EQUITY) to buy valuable things (ASSET)
ASSET can be further divided into 2 parts:
1 NON-CURRENT ASSET : Asset that can not be turned into money within one year
2 CURRENT ASSET : Asset that can be turned into money within one year
LIABILITY can be further divided into 2 parts:
1 NON-CURRENT LIABILITY : Liability that must be paid off to debtors in more than one year
2 CURRENT LIABILITY : Liability that must be paid off to debtors within one year.
Balance Sheet Template
Furher Info:
"Asset"
"Liability"
"Equity"
Hi,
ReplyDeleteWould like to understand when reading annual financial report, there are Company and Group info.
Which one we should refer to and why?
Appreciate your explanations.
Thanks.
hi i wish to know the answer also thx ^^
ReplyDeleteBasically we refer to Group..Group includes all the subsidiaries of the company into one.. For example company A owns subsidiary B and subsidiary C. Revenue of group = Revenue A+ Revenue B+ Revenue C.. Whereas Revenue Company = Revenue A only
ReplyDeleteBalance sheet is one of the major financial statements that provides an insight about the company’s financial health. Here is a great resource that you can create your balance sheet with various graphs provides a calculation of basic financial ratios: https://www.someka.net/excel-template/balance-sheet-template/
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ReplyDelete