balance sheet (1) Flashcards
1
Q
what is a balance sheet?
A
financial snapshot of the assets and liabilities of an enterprise on a particular day, usually the last day of the enterprise’s financial year
2
Q
what is the balance sheet also referred as?
A
statement of financial position
3
Q
purpose:
what does a balance sheet show the value of?
A
all of the enterprise’s assets and liabilities
4
Q
purpose:
what does a balance sheet show the source of?
A
capital used by the enterprise to finance its operations
5
Q
preparing a balance sheet:
what does an enterprise need to categorise to prepare a balance sheet correctly?
A
the enterprise’s assets into fixed and current assets, and its liabilities into current and long-term liabilities.
