Balance Sheet

Question 1

Balance Sheet

Answer 1

• Balance Sheet presents the financial position of a company as of a particular date.
• Balance Sheet tells you the net worth of a company.
• Its as of year-end and as of a specific date and tells you what we own (assets) and what we owe (liabilities) as of that date and what the net worth (equity) of the Organization is.
  Assets= Liabilities + Equity

Question 2

Assets

Answer 2

Anything which will result in inflow of future economic benefit is an asset

Question 3

Current Assets

Answer 3

Any asset that would be converted in cash or result in an economic benefit within 1 year or Operating Cycle whichever is longer

Question 4

Non-current assets

Answer 4

-Any asset that would be converted in cash or result in an economic benefit AFTER 1 year or operating cycle whichever is longer.

Question 5

Current liabilities

Answer 5

Any liability that would be settled in cash or result in an outflow of economic benefits within 1 year or operating cycle whichever is longer

Question 6

Non-current liabilities

Answer 6

Any liability that would be settled in cash or result in an outflow of economic benefits after 1 year or operating cycle whichever is longer.

Question 7

Equity

Answer 7

Equity represents owners interest in the company and is also the net worth of the organization.