Accounting Balance Sheet - Synthetic

The balance sheet is essential in accounting. It is composed of two large masses, the active and the passive. * The asset corresponds to the property owned by the community, it is the image of what it owns (materials, stocks, land, availability); * The liability gives the origin and composition of the funds of the collectivity, it is the image of what it owes (share capital, profit for the year, loans, financial debts). These two positions are balanced. The balance sheet is a financial document giving an image of the assets of the community at a time t, which is a specific date, the closing date of the financial year, December 31 (calendar year). The balance sheet shall consist of: * the liability, on the right, which lists all the resources available to the community; * the asset, on the left, which refers to the use that it makes of these resources. An accounting balance sheet can be analysed according to the following four blocks: * Fixed assets from the balance sheet: all the capital assets necessary for the activity of the community (Machines, titles, production tools) * Assets Circulating on the balance sheet: all assets held by the community and intended not to remain there permanently (Stocks, receivables, ..) * Own capital on the balance sheet: Share capital (debts to partners) and reserves. * Other Balance Sheet Debts: obligations towards a third party giving rise to a certain outflow of "cash" (bank loans, supplier debts) The detailed report is presented with the reminder of the previous year, which makes it possible to compare several years. We find: Assets: fixed assets; Fixed assets are assets intended to remain permanently in the community. It is said that the asset is immobilized as opposed to the current asset because it is not as liquidable. The fixed asset is valued by its cost of purchase or production (if the community produces it itself) and some assets can be depreciated. Assets are what the community owns, whether they are tangible or intangible. In other words, these are the elements used by the community for the purposes of its activity. Liabilities: permanent capital, including equity. The greater the equity, the greater the community's ability to meet its long-term commitments. Equity, as a stable resource of the community, is used to finance investments. Liabilities represent essentially all debts. The Synthetic Balance Sheet provided by the Public Accountant is attached in PDF format.