Why balance sheet becomes a key financial statement to understand the business of an organisation? Is understanding balance sheet a pain for people of non finance background?
1 Replies
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 19 March 2010
Balance Sheet is perhaps the most important document of a business by whichonecan understand the health of a business. This is so because it lists the assets held by a business on one side and on the other side are listed sources of those assets (own capital or outside liabilities). It is very much simple to understand even for a non finance background person. All big businessmen who talk and deal with big figures are not finance people. Some ratios can be calculated to understand the short-term and long-term solvency of the business. Inter-firm and intra firm camparisons can also be made.
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
