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3.4 Final Accounts (Different types of intangible assets (Goodwill - arise…
3.4 Final Accounts
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The balance sheet
- The balance sheet records the net wealth (this 'belongs' to shareholders) or shareholders' equity of a business at one moment in time.
- The aim of most businesses is to increase the shareholders' equity by raising the value of the business's assets more than any increase in the value of liabilities.
Definition
Balance sheet: an accounting statement that records the values of a business's assets, liabilities and shareholders' equity at one point in time
shareholders' equity : total value of assets less total value of liabilities
share capital : the total value of capital rised from shareholders by the issue of shares
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