Accountants Are Required To Manage Accounting Courses.

First,

A balance sheet is an accounting statement that reflects the financial position of an enterprise on a specific date.

It is based on the accounting identity of "assets = Liabilities + owners' equity". According to a certain classification standard and a certain order, the assets, liabilities, owners' rights and interests of enterprises on a specific date are appropriately arranged, and a large amount of data formed in daily work is highly condensed and compiled.

The balance sheet reflects the economic resources owned or controlled by an enterprise on that particular date, the economic obligations it undertakes, and the owner's claim for net assets.

The balance sheet is one of the major financial statements of an enterprise. Every independent accounting firm must compile its balance sheet on time.

Two. The role of balance sheet

The functions of the balance sheet are mainly reflected in the following aspects:

1. reflect the economic resources owned by enterprises or their distribution.

The balance sheet divides assets owned or controlled by enterprises into categories of current assets, long-term investments, fixed assets, intangible assets and other assets according to their economic nature and usage.

Under each category, it is divided into detailed items.

In this way, the user of the report can clearly understand the total amount and structure of the assets owned or controlled by a company on a particular date at a glance.

2. reflects the structure of rights and interests of enterprises.

The so-called equity structure refers to the relative proportion of liabilities and owners' equity (owners' equity) in the total amount of rights and interests of an enterprise.

The provider of an enterprise's capital is no more than creditors and owners. Accordingly, the rights and interests of enterprises are also enjoyed by them.

The balance sheet divides the rights and interests of an enterprise into two categories: liabilities and owner's equity.

At the same time, the liabilities of various liabilities are divided into current liabilities and non current liabilities. The owners' equity is divided into equity (or paid in capital), capital reserves, surplus reserves and undistributed profits.

In this way, the user of the report can clearly understand the source and composition of the enterprise's capital on a specific date from the balance sheet.

3. reflects corporate mobility and

The so-called financial strength refers to the ability of enterprises to use their financial resources to adapt to the changes in the environment.

The financial strength of an enterprise depends on its asset structure and its equity structure (or capital structure).

Maintaining a reasonable asset and capital structure will enable enterprises to obtain capital at lower cost and enhance their financial flexibility.

Assets, liabilities and owners' equity shown in the balance sheet help to assess the financial strength of an enterprise.

4. provide for

The balance sheet also has certain limitations, including:

1. the balance sheet uses the historical cost valuation model, does not reflect the current market value of assets, liabilities and owners' equity, so the information disclosed in the table is more objective and easy to verify, but due to the impact of inflation, the original cost on the book is far from the present value of the compilation day.

2. the balance sheet shows the relevant accounting information in currency. It will inevitably miss many important economic resources and economic obligations, such as the human resources of enterprises, the leading degree of production technology, and the social responsibilities of enterprises.

3. the balance sheet information contains many estimates, such as bad debt preparation, depreciation of fixed assets, intangible assets amortization, etc., which can not completely avoid the existence of subjective factors, thereby affecting the reliability of accounting information.

4. the full understanding of the information provided by the balance sheet depends on the judgement of the users of the report. For example, the calculation of the mobile ratio and the quick ratio is not directly reflected in the balance sheet, which puts forward higher requirements for the users of the statements.