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Balance Sheet Dis Financial Management Summary 2902be01y

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  • CategoryBalance Sheet.
  • TopicDis balance sheet.
  • AuthorOlivia Foxall
  • PostedWed, Aug 21st 2019 05:30 AM
  • Formatjpg/jpeg

Unlike the income statement, the balance sheet does not report activities over a period of time. The balance sheet is essentially a picture a company’s recourses, debts, and ownership on a given day. This is why the balance sheet is sometimes considered less reliable or less telling of a company’s current financial performance than a profit and loss statement. Annual income statements look at performance over the course of 12 months, where as, the statement of financial position only focuses on the financial position of one day.

For the purposes of the balance sheet, the assets are the total of everything your business has are valued by the business. This might be something that’s in the form of real property, such as an office building with a parking garage. It could also be stocks, bonds, or working capital such as heavy machinery and equipment. Some businesses will even include their unsold inventory in this section.

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