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KUPANG TIMES - "Balance sheet (Neraca), profit and loss comparison record, accounts receivable, income and expenses, and so on,"|KBBI
"Balance Sheet, a summary that describes the position of assets, liabilities and own capital of a business entity at a certain time; it is called a balance sheet because in fact there is a balance between assets on one side and liabilities and capital on the other side (balance sheet),"|OJK
What is Balance Sheet (Neraca).?
The balance sheet is that part of the financial statements of a business entity/or company that records information about the assets, liabilities and shareholder equity at any given time.
This report must be made by a business entity /or company because it is a guide in making business decisions.
Elements in the Balance Sheet,
Assets /or Property
Assets/assets are assets owned by business entities, which can be in the form of cash, accounts receivable, land, machinery, and so on.
The types of assets are divided into 3 types, namely; current assets, fixed assets and intangible assets.
Liabilities/or Debts
Liabilities / or debts are the company's obligations to other parties that must be paid, in the short term or long term.
Liabilities can be divided into two, namely; short term liabilities and long term liabilities.
Equity
Capital /or equity is money or goods that are used as a basis for carrying out work.
Equity is the difference between assets minus liabilities, so it is often referred to as net assets.
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Balance Sheet Benefits,
1. Applies as an analysis tool for changes in a company's financial condition on a regular basis, from year to year,
2. Business entity liquidity analysis tool to determine the company's ability to perform its obligations,
3. Analysis tool for the company's ability to pay off short-term debt.
|Narrative: Economics, Business, Banking, Education,
|Text: W.J.B
| Literacy Sources: KBBI, OJK, W.J.B
