Balance sheet total - is the economic commitments that have any organization at the reporting date.First of all, the economic obligations arise for persons who have an economic interest in the affairs of the organization.
The balance sheet is responsible for the compliance of active and passive part of the economic resources that are currently available from the company, the total volume of real financial resources placed by creditors and owners.Capital and passive part of the balance of nature delineated obligations to third parties, and the owners, urgent payments and order repayment.
Unfortunately, the balance sheet - it's not the real reflection of the funds available to the organization.The reason is the value of the assets does not match the actual market value.
To balance sheet definition was real, you must fill out the appropriate forms of accounting.Of these, it can be concluded about the reality of assets.The most clear picture appears after filling out the report on profits and losses in the form of number 2 statements.
When analyzing financial statements emphasis on the scope of the alleged debtor.Therefore, the generalized analysis should view the balance sheet items that are directly related to its core business.It is worth and analysis of receivables and payables for their structure and quality.
When the monitoring of financial statements need to evaluate its structure.There is no doubt that the balance sheet allows it to do according to the assets and liabilities.The next step to create a complete picture of the potential borrower becomes a calculation of factors that will characterize its main indicators of financial stability, business activity, liquidity, profitability and subsequent profitability.If necessary analyzes and other factors specific to the scope of the potential borrower.
Any company or organization can improve its balance sheet total.In different industries, there are various operations that will contribute to an increase in this indicator.
example, the balance sheet of the bank may be increased due to the growth of deposit funds in bank accounts and the amount of loans.To achieve this figure can increase, and by increasing the share capital, which will be responsible for liability, and increase the number of loans or investments in various securities will correspond to the asset.
Each type of funds and assets, and liabilities is one of balance sheet items.To calculate the total asset need be compared, the balance at the beginning and end.The data obtained will be equal to total liabilities.So output balance sheet - this is its total value.And equality of outcome will be crucial.In this manner, checking accounts, to identify inadvertent errors.Therefore, all business transactions conducted by now, have a direct impact on the balance sheet total.They can lead to both an increase in the value of liabilities and assets.In rare cases, changes in the articles occurring simultaneously.Therefore, when there is a question of increasing the balance sheet total, it should be carried out by the following operations:
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move - they contribute to changes in the asset balance;
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change of purpose at the expense of changes in the balance sheet liabilities;
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investments, thereby changing the overall results - and they increase in assets and liabilities;
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withdrawal - is due to the change in the direction of a decrease in the overall outcome of the balance of assets and liabilities.
In these operations carried out by the company, it should be noted that asset and liability balance will eventually consist of a total of representing their articles and each of them has its own code, as reflected in the standard reports.When filling out the papers, you can choose the best way to solve the problem to improve the balance sheet total.
