What is the Meaning & Definition of General Balance
A balance sheet is a financial report that gives an account of the State of the economy and finances of an institution at a time or for a certain period of time. The balance sheet, also known as State of patrimonial situation or balance sheet, is a set of data and information presented as a final document that includes an overview of the financial situation of an institution or company and who often takes place once a year. Balance or statement of the situation combines in itself the concepts of assets, liabilities and shareholders ' equity, as the three fundamental elements that make up the accounts of an institution.
The first of these, the active, deals with securities accounts available to the company, i.e., elements likely to generate money through the use, sale or Exchange.
Liabilities, on the other hand, constitutes the obligations and the contingencies to which you should pay attention, such as loans, purchases and other transactions in the medium or long term. Finally, the equity comes to represent assets less liabilities, i.e. contributions from shareholders and other investors that, ultimately, realize the capacity of self-financing available to the company.
The asset includes all the accounts that reflect the values available to the entity. All the elements of the active are likely to bring money to the company in the future, either through its use, sale or its change. Conversely, the passive displays all the obligations of certain of the entity and the contingencies that should be recorded. These obligations are, naturally, economic: loans, shopping with deferred payment, etc.
In other words, the equity that will be the key element of the balance sheet is a conclusion between what the company has, what must be and therefore what authentically is possessed, i.e., the final stage of its accounting.
The first of these, the active, deals with securities accounts available to the company, i.e., elements likely to generate money through the use, sale or Exchange.
Liabilities, on the other hand, constitutes the obligations and the contingencies to which you should pay attention, such as loans, purchases and other transactions in the medium or long term. Finally, the equity comes to represent assets less liabilities, i.e. contributions from shareholders and other investors that, ultimately, realize the capacity of self-financing available to the company.
The asset includes all the accounts that reflect the values available to the entity. All the elements of the active are likely to bring money to the company in the future, either through its use, sale or its change. Conversely, the passive displays all the obligations of certain of the entity and the contingencies that should be recorded. These obligations are, naturally, economic: loans, shopping with deferred payment, etc.
In other words, the equity that will be the key element of the balance sheet is a conclusion between what the company has, what must be and therefore what authentically is possessed, i.e., the final stage of its accounting.