The balance sheet, also known as the balance sheet, is nothing more than an exhaustive report that helps to check the health of a company in relation to its economic and financial state, carried out at a specific time.
Thus, the concept of balance sheet is understood as a useful way to review the company's accounting to value its assets and debts. Therefore, to know what the balance sheet is, we will have to understand that it is a fundamental part of the annual accounts that will help us find out the final capital of a company.
The structure of the balance sheet
To structure the balance sheet of any company, there are two main points that we will include in the representation of assets:
- Assets: fixed and current. They are the accounts and elements responsible for generating money in the company. We are talking about liquid money, investments or tangible or intangible assets.
- Liabilities: equity, long and short term. That is to say, the obligations that the company has through loans, letters, debts, maturities and creditors.