Balance Sheet Journal



Balance Sheet Journal

Introduction

The most important financial reporting tool provides a clear picture of company's financial position of specific period. It explains the summary of financial operation that company has performed during a fiscal year in shape of assets, liabilities, and owner's equity. Company generally formulate balance sheet at the end of fiscal thus enabling them to analyze the performance of the company during a fiscal year as compare to its competitors.

lives of human is quiet similar to life of company in several aspects as human also contain several assets that poses a considerable importance to their personal life, similarly they pose certain liabilities that they occur to fulfill their personal needs, and final contain some equity that they keep for their future life (Billmeier & Mathisen 2006).

proper formulation of balance sheet of company require the use of several important accounting concept as they enable user to understand the basic concept of accounting, and provides clear picture of companies performance to its different shareholders and stakeholders. Accurate balance sheet is considered in which assets section is equal to liabilities and shareholders' equity section (Hui, 2007).

Formulation of human balance sheet does not require implementation of accounting principles as it is based on experience of human lives that they come across during diversified circumstance. These diversified circumstances enable individual to reform its living standards as it shows them the reality of life and provides them the opportunity of formulating a proper balance sheet that provides them the options of reconsidering their investment decisions. Next section will try to compare the elements of balance sheet of company with the individual balance sheet.

Discussion

Assets section

First section of balance sheet comprises of current and fixed assets describe the financial stability of the company. Efficient quantity of these assets shows that company has performed exceptionally ...