{"id":3278,"date":"2021-07-14T19:09:44","date_gmt":"2021-07-14T13:39:44","guid":{"rendered":"https:\/\/www.goseeko.com\/blog\/?p=3278"},"modified":"2026-04-01T05:49:03","modified_gmt":"2026-04-01T00:19:03","slug":"what-is-a-balance-sheet","status":"publish","type":"post","link":"https:\/\/www.goseeko.com\/blog\/what-is-a-balance-sheet\/","title":{"rendered":"What is a Balance Sheet?"},"content":{"rendered":"\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p>The<strong> Balance Sheet<\/strong> provides a statement of a company&#8217;s Assets, liabilities, and shareholders&#8217; equity at a particular point in time. They report a snapshot of what your business owns, what it owes, and the amount invested by that owner in a single day. <\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"What is Balance Sheet? Balance Sheet Kya Hota Hai? Simple Explanation in Hindi #TrueInvesting\" width=\"1170\" height=\"658\" src=\"https:\/\/www.youtube.com\/embed\/pU5o_dZeEh4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the elements on the Balance Sheet?<\/strong><\/h2>\n\n\n\n<p>The Balance Sheet consists of the following elements:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Assets<\/strong><\/h2>\n\n\n\n<p>An asset is owned by a company and retains some quantifiable value. That is, it can be liquidated and turned into cash. Additionally, they are the goods and resources owned by the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Division of Assets:<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Liquid Assets <\/strong>are typically cash equivalents, prepaid expenses, inventories, securities, accounts receivable, etc. that a company expects to convert to money within a year.<\/li><li> <strong>Fixed assets<\/strong> are long-term investments such as land, equipment, patents, trademarks, and intellectual property that companies do not expect to convert to cash in the short term.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Liabilities<\/strong><\/h2>\n\n\n\n<p>The next section lists the company&#8217;s liabilities. <\/p>\n\n\n\n<p>1. <strong>Current liabilities <\/strong>include rent, utilities, taxes, current payments for long-term debt, interest payments, and salaries.<\/p>\n\n\n\n<p>2. <strong>&nbsp;Fixed liabilities<\/strong> include deferred taxes and pension fund liabilities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Shareholders&#8217; Equity<\/strong><\/h2>\n\n\n\n<p>Shareholders&#8217; Equity refers to the amount generated by a business, as a result , the amount invested into the business by its owner (or shareholders), and the capital donated. Finally,  we get net worth.<\/p>\n\n\n\n<p><strong>Stakeholder Capital = Total Assets-Total Liability<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Balancing of Balance Sheet<\/h2>\n\n\n\n<p>The name itself derives from the fact that a company&#8217;s assets are equal to its liabilities plus the capital of the issued shareholders. To sum up the reasons of not balancing:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Firstly, Incomplete or misplaced data.<\/li><li>Secondly, Incorrectly entered transaction.<\/li><li>Further more Exchange rate error.<\/li><li>In addition Inventory error.<\/li><li>Moreover Equity calculation is miscalculated.<\/li><li>Lastly, Miscalculated loan amortization or depreciation.<\/li><\/ol>\n\n\n\n<p><strong>Other Links<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<ul class=\"wp-block-list\"><li><a href=\"http:\/\/What is Scientific Management?\">What is Scientific Management?<\/a><\/li><li><a href=\"https:\/\/www.goseeko.com\/blog\/index.php\/2021\/05\/06\/what-are-the-7ps-of-marketing-mix\/\">Explain the 7Ps of Marketing Mix<\/a>.<\/li><li><a href=\"http:\/\/What are the Principles of Management?\">What are the Principles of Management?<\/a><\/li><li><a href=\"http:\/\/What is a Mutual Fund Trust?\">Define a Mutual Fund Trust<\/a><\/li><li><a href=\"http:\/\/What are the types of Leadership Styles?\">What are the types of Leadership Styles?<\/a><\/li><\/ul>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Balance Sheet provides a statement of a company&#8217;s assets, liabilities, and shareholders&#8217; equity at a particular point in time. <\/p>\n","protected":false},"author":3,"featured_media":3284,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-3278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commerce"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Balance Sheet? 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