Brief summary of Balance sheets, their used, equations, etc
Title: Brief summary of Balance sheets, their used, equations, etc
Category: /Business & Economy/Accounting
Details: Words: 507 | Pages: 2 (approximately 235 words/page)
Brief summary of Balance sheets, their used, equations, etc
Category: /Business & Economy/Accounting
Details: Words: 507 | Pages: 2 (approximately 235 words/page)
The Balance Sheet
The balance sheet is one of the financial statements that limited companies and PLCs produce every year for their shareholders. It is like a financial snapshot of the company's financial situation at that moment in time. It is worked out at the company's year end, giving the company's assets and liabilities at that moment.
It is given in two halves - the top half shows where the money is currently being used
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by ploughing profit back into the business. This is called retained profit, and is the other source of money usually included in the bottom half of the balance sheet. This may therefore look as follows:
Share capital<Tab/><Tab/>100
Retained profit<Tab/><Tab/>170
CAPITAL EMPLOYED<Tab/><Tab/>£270m