Please enable JavaScript.

Coggle requires JavaScript to display documents.

THE BALANCE SHEET - Coggle Diagram

- - - - Legislation requires that this document be a true image of the company's equity status.
    - - In liabilities, a distinction is made between own resources, long-term liabilities and current liabilities. The first are the funds of the company (share capital, reserves).
      - Long-term liabilities are made up of long-term debts (loans, obligations), and current liabilities are short-term foreign capital (commercial credit, short-term debts).
      - There are different types of balance depending on the moment and the purpose.
        It is the basic demonstrative statement of the financial situation of a company, at a certain date, prepared in accordance with the basic principles of government accounting that includes assets, liabilities and stockholders' equity.
        
        It is an accounting document that reflects the financial situation of an economic entity, whether of a public or private organization, at a specific date and that allows a comparative analysis of it; includes assets, liabilities, and stockholders' equity.
        
        It is formulated according to a standard format and criteria so that the basic information of the company can be obtained uniformly, such as: financial position, profit capacity and sources of funding.
- - - - c. Balance Presentation Methods The presentation of the different accounts that make up the balance sheet can be done according to their increasing or decreasing order of liquidity. The method is increasing when the assets with the highest liquidity or availability are presented first and then the other accounts in this order of importance.
        
        It is said that the balance sheet is classified in order of liquidity and decreasing enforceability, when the immobilized assets are presented first and finally, observing that order the realizable or current assets.
- - - - NET EQUITY: Value of the company once debts have been discounted.
        Capital stock, profits, losses, reserves.