Balance Sheet

Balance Sheet and Financial Accounts:

• Income statement:

  • This measures the business’ performance (income and costs) over a given period of time, usually one year

• Balance sheet:

  • A snapshot of the business’ assets (what it owns or it is owed) and its liabilities (what it owes) on a particular day

• Cash Flow statement:

  • Shows how the business has generated and disposed of cash and liquid funds during a specific period

The Balance Sheet:

• This is a snapshot of the business’ assets (what it owns or is owed) and its liabilities (what it owes) on a particular day- usually the day of a financial period

Two sides of the Balance Sheet:

• Net Assets:

  • + Non-Current Assets

  • + Current Assets

  • - Current Liabilities

  • - Non-current Liabilities

• Capital and Reserves:

  • + Share Capital

  • +Reserves (Profit)

Non-Current Assets:

• Land and Buildings

• Plant and Machinery

• Goodwill

Current Assets:

• Cash Balances

• Trade Debtors (Receivables)

• Inventories (Stocks)

Current Liabilities:

• Trade Creditors (Payables)

• Short-term Borrowings

• Accruals and Provisions

Non-Current Liabilities:

• Long-term Borrowings

• Other Long-term Liabilities