Balance Sheet
About Balance Sheet
A
balance sheet is the most sought-after report of an organization. A
balance sheet is a statement of financial prudence of an organization
showing a summary of assets, liabilities, and shareholder’s equity.
Businesses
irrespective of their type i.e. sole proprietorship, a business
partnership, a corporation, private limited company, or other
organization such as government or not-for-profit entity, enlists their
financial status by a balance sheet.
The total value of assets in the balance sheet should match the total of liabilities and equity hence, it is called balanced.
A balance sheet lists:
• Current assets
• Investments
• Property, plant, and equipment
• Intangible assets
• Other assets
• Current liabilities
• Noncurrent liabilities
• Stockholders' equity
Why is Balance Sheet important?
A balance sheet is a crucial financial statement that lists the financial health of the company.
A balance sheet provides the following vital information for a company
• Liquidity or ready cash available
• Efficiency of utilizing the assets
• Leverage or amount of financial risk the company is facing or can take
The above helps a company to make the following financial decisions
• Working Capital Needed
• The Value of Business or its Net Worth
• Future Sustainability of Operation
Who should take the Balance Sheet Exam?
• Finance and Accounting professionals
• Business owners
• Finance and Accounting managers and senior executives
• Anyone who wants to assess their balance sheet-related skills
• Entrepreneurs
Balance Sheet Certification Course Outline
1. Basic Accounting Principles and Framework
2. The Accounting Equation and Financial Statements
3. The Accounting Cycle and Accrual Accounting
4. Accounting Transactions and Books of Account
5. Trial Balance & Adjusting Entries
6. The Balance Sheet