Difference between revisions of "Balance sheet"
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Balance sheet]] (also known as [[statement of financial position]]). A financial statement, as of a particular date, that shows the amount of [[assets]] owned by an [[organization]] as well as the amount of [[asset claims|claims]] ([[liabilities]] and [[owner's equity]]) against these assets. | :[[Balance sheet]] (also known as [[statement of financial position]]). A financial statement, as of a particular date, that shows the amount of [[assets]] owned by an [[organization]] as well as the amount of [[asset claims|claims]] ([[liabilities]] and [[owner's equity]]) against these assets. | ||
| + | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| + | :[[Balance sheet]]. A statement of the firm's financial position at a specific point in time. The firm's assets are listed on the left-hand side of the balance sheet; the right-hand side shows its liabilities and equity, or the claims against these assets. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 02:03, 30 October 2019
Balance sheet (alternatively known as statement of financial position; hereinafter, the Report) is a financial report, as of a particular date, that shows the amount of assets owned by a legal entity as well as the amount of claims (both liabilities and owner's equity) against these assets.
The Report shows the owners, managers, and other authorized stakeholders how much owner's equity is in the business, how many assets the business owns, and what the business owes in liabilities. The Report falls in line with the basic accounting equation.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Balance sheet (also known as statement of financial position). A financial statement, as of a particular date, that shows the amount of assets owned by an organization as well as the amount of claims (liabilities and owner's equity) against these assets.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Balance sheet. A statement of the firm's financial position at a specific point in time. The firm's assets are listed on the left-hand side of the balance sheet; the right-hand side shows its liabilities and equity, or the claims against these assets.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
