COMPREHENSION ABOUT BALANCE SHEET

From module page 37-38

1.The final product of the accounting process is the balance sheet.

2.A balance sheet is a first statement that provides a summary of what a company
owns and what it owes on one particular day.

3.It provides information for a specific point in time, for example, on January 30,
1993.

4.Assets represent everything of value that is owned by a business, liabilities are
the debts which is a company owes.

5.Owners or stockholders equity is determined by subtracting liabilities from assets.

6.It can be represented by the fundamental accounting equation assets equal
liabilities plus owner equity.

7.Yes, it does. Because one side must equal the other. If not, it must be wrong with
the recording.

8.A balance is useful for a business, because it provides a financial picture of a
company on a particular day. It provides managers with financial information for
company decision making.