Casual Format Of The Balance Sheet
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Format of the balance sheet. The balance sheet of the bank is different from the balance sheet of the company and it is prepared only by the banks according to the mandate by the Banks Regulatory Authorities in order to reflect the tradeoff between the profit of the bank and its risk and its financial health. On the right side of the balance sheet format assets followed with sub-components are displayed. The balance sheet is basically a report version of the accounting equation also called the balance sheet equation where assets always equation liabilities plus shareholders equity.
The balance sheet format largely is universally accepted with the three sections of assets liabilities and owners equity. The balance sheet used to sometimes be shown in a horizontal format instead of the vertical format shown above. In this way the balance sheet shows how the resources controlled by the business assets are financed by debt liabilities or shareholder investments equity.
The following is a format of a balance sheet based on. Also the balance sheet is often abbreviated as BS or BS. However there are two ways of presenting the balance sheet format these two are known as account format and report format.
The balance sheet is one of the three income statement and statement of cash flows. The Order of Liquidity or Realizability. The balance sheet is a statement of assets and liabilities including the owners equity at a particular date of a business concern.
Within each of these categories line. According to this method assets are entered up in the balance sheet following the order in which they can be converted into cash and the liabilities in the order in which they can be paid off. The balance sheet can be reported in either of the following formats.
What is the Format of the balance sheet. This format is one in which the balance sheet presentation format is a single column of numbers beginning with asset line items followed by liability line items and ending with shareholders equity line items. This format divides the balance sheet into two columns.