What Items Are Reported on a Balance Sheet?
Typically, the balance sheet is produced for a 12-month period, and it includes detailed information on the company's assets and liabilities. It also shows the amount of shareholder equity, or net assets.
In addition to liabilities and shareholders' equity, the balance sheet also includes items such as accounts receivables and inventory. The accounts receivables account includes money owed to customers, but not yet paid. The inventory account includes raw materials and work in process. These items are valued at the lower of cost or market value. If the inventory is not yet sold, it can be offset by an allowance for obsolete inventory.
The balance sheet is a great way to find out whether or not your company is financially healthy. It can help you make important financial decisions, including whether or not to expand your company or invest in new equipment. The income statement is also used to make important financial decisions. It provides a company with information on its sales, expenses, and revenues.
The assets section of the balance sheet includes fixed assets, such as buildings, vehicles, and equipment. Fixed assets last for a long time and depreciate in value over time. Fixed assets also include patents and trademarks. When accelerated depreciation is performed, the balance sheet's figures can be artificially decreased.
The liabilities section includes accounts payable, recurring expenses, and bills to suppliers. The liabilities section is further broken down into current liabilities and long-term liabilities. Current liabilities are due within one year, while long-term liabilities are due after a year.