BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Summary. The balance sheet (also referred to as the statement of financial position) discloses what an entity owns (assets) and what it owes (liabilities) at a specific point in time. Equity is the owners’ residual interest in the assets of a company, net of its liabilities.

Detailed explanation-2: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).

Detailed explanation-3: -A balance sheet states a business’s assets, liabilities, and owner’s equity at a specific point in time. They offer a snapshot of what your business owns and what it owes, as well as the amount invested by its owners, reported on a single day.

Detailed explanation-4: -It is a statement of the financial position of an organization at a single point in time. In financial accounting, a balance sheet list is a snapshot of the business at one point in time. It summarizes what the company owns (its assets), what it owes (its liabilities), and its equity at that time.

Detailed explanation-5: -This report considers five principal measurement bases: • historical cost; • value to the business (also known as deprival value or current cost); • fair value; • realisable value; and • value in use. Of these, the last four are all forms of current value measurement.