Revision:A Level Accounts Module 1 - Balance sheets
Balance sheet - introduction
The balance sheet is a list of balances arranged according to whether they are assets, capital or liabilities, to depict the financial situation of the business on a specific date. It is often referred to as a ''snapshot'' of the firm on a particular date - as if we had entered in the firm and taking photographs of the various components that make up the business. It can only be constructed on one date and not over a period of time as the values for assets and liabilities will change frequently.
The balances that are featured in the balance sheet would be the balances remaining on our trial balance after the trading and profit and loss account for the period has been completed. All the...