What is a balance sheet? What are the main functions?

The balance sheet, also known as the statement of financial position, is the main accounting statement that reflects the financial position of an enterprise on a certain date (usually at the end of each accounting period) (that is, the status of assets, liabilities and owners' equity). Based on the principle of accounting balance, the balance sheet divides accounting transactions such as assets, liabilities and shareholders' equity into "assets" and "liabilities and shareholders' equity". After accounting procedures such as entry, transfer, suspense, trial calculation and adjustment, it is condensed into a report based on the static enterprise situation on a specific date. In addition to internal debugging, business direction and fraud prevention, its report function can also let all readers know the business situation of the enterprise in the shortest time.

Meaning and function:

1, reflecting the composition and status of enterprise assets, and analyzing the economic resources owned by the enterprise and their distribution on a certain date can reveal the assets and distribution structure of the company;

2. It can reflect the total liabilities and structure of the enterprise on a certain date, and reveal the source and composition of the company's assets;

3, can reflect the situation of enterprise owners' rights and interests, and understand the share of existing investors in the total investment of enterprises;

4, can be used to explain, evaluate and predict the short-term solvency of enterprises;

5, can be used to explain, evaluate and predict the long-term solvency and capital structure of enterprises;

6. It can be used to explain, evaluate and predict the financial elasticity of enterprises;

7, can be used to explain, evaluate and predict enterprise performance, to help management departments make reasonable business decisions;

8. It helps to evaluate the profitability of the company.

Reply time: 202 1-04-0 1. Please refer to the latest business changes announced by Ping An Bank in official website.

[I know Ping An Bank] Want to know more? Come and watch I Know Ping An Bank ~

/paim/iknow/index.html