Accounting is an important and obligatory measure for each organization. One of its main functions is to balance. This allows not only to determine the distribution of property of the enterprise, but also clearly illustrates its value, and also allows you to find out the amount of existing debt, the amount received as a result of production and sale of products. It should be noted that such calculations can be performed for each period under consideration, since all the data for this is recorded in special ledgers and described in detail in the reporting documentation.
Two components
Balance is traditionally presented in the form of two fundamental categories. It is important to indicate the fact that both of these parts must be equal numerically. If this is not so, it is advisable to consider two options: either the accountant made a mistake during the calculations and calculations, or there is a poorly disguised so-called black bookkeeping. In this case, a solution to the first situation can be considered a banal, but rather simple and prosaic thorough verification of the calculations. In the event that there is a second situation, then employees of all well-known state structures will tell about what and how to do to an unlucky accountant.
The balance sheet asset is a kind of indicator of where and how the invested funds are directed. In turn, the second category (otherwise called liabilities) illustrates the processes by which the sources of financing the organization are formed and distributed. Thus, in the general case, accounting consists of the following main points: asset balance - these are current and non-current assets; liabilities are presented in the form of capital and its reserves and liabilities of all kinds. For a more accurate and complete understanding of this issue, you should familiarize yourself with each of these articles of financial transactions in more detail.
Non-current assets
As mentioned earlier, the assessment of the asset balance is based on two of its components. The group under consideration includes fixed assets, intangible assets, the results of construction in progress and all kinds of long-term obligations . It is they that are the most important for forecasting and planning processes, since they represent a kind of support for each organization.
Current assets
It is important to remember that a balance sheet asset is also working capital. They traditionally consist of receivables, financial investments and stocks. It should be noted that in the accounting calculations there is also a value called "net assets in the balance sheet". It is understood as a real valuation of all property owned by the enterprise.
Other articles
According to modern scholars, balance sheet assets are not only the two categories listed above. This should also include items that are difficult to consider property. For example, VAT and deferred expenses.