Balance sheet in accounting is a financial snapshot of the company at a given point in time. It is one of the most important financial statements that is used for financial analysis and forecasting. Balance Sheet in accounting provides details of assets (current assets and long-term assets), liabilities (current liabilities and long-term liabilities) and shareholders equity (common stock, preferred stock and retained earnings) in detail.
In this section on Balance Sheet in accounting, we discuss the following topics in detail
We discuss the Balance Sheet Accounting Equation Assets = Liabilities + Equities in detail along with its importance
Key differences between assets and liabilities
Differences between Trial balance and Balance Sheet
Balance Sheet impact when financing is done through equity or debt
What is the difference between the accounting for balance sheet and consolidated balance sheet
Annual reports contain management discussion and analysis and what all additional details does it provide regarding the balance sheet.
We also discuss the impact of Commitment and Contingencies which do not usually come on the balance sheet in accounting.
Differences between capital reserve and revenue reserve
Differences between capital receipt and revenue receipt
Types of securities found on the balance sheet - held to maturity, available for sale and trading securities.
Balance sheet is one of the most important financial statements and is useful for doing accounting analysis and modeling
Balance Sheet vs Consolidated Balance Sheet | Top 9 Differences
Balance Sheet is an important financial statement of assets, liabilities, and capital for a particular period, whereas Consolidated Balance Sheet summarizes the financial affairs of parent & subsidiary company.
Commitments and Contingencies | Disclosures | Examples
Commitment is an obligation of a company to external entities that often arises in connection with the legal contracts executed by the company, whereas Contigencies is the implied obligation that is expected to take place depending on the outcome of the future event.
Capital lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset, whereas Operating lease is stated as a lease agreement which does not involve the transfer of substantial risk and rewards of ownership of the asset.