StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Balance sheet

Pages 6 (1506 words)
Download 1
Balance sheet constitutes a vital part of a company's final accounts that provides valuable information to internal and external users of financial statements. A balance sheet can be produced and presented on an annual or periodic basis. Balance sheet is not used as source of information related to day-to-day transactions…

Extract of sample

It can also help managers to establish policies and strategies for the future.
This paper provides information about the importance of balance sheet and its uses for investors and management. It also provides an insight into the ratio analysis that could be done on the basis of information obtained from balance sheet. The paper shows calculation and analysis of ratios from the balance sheet of Palaron Plc so as to understand the usefulness of information presented in the balance sheet for investors.
Balance sheet plays a vital role in depicting the financial position of a company. It further shows whether an investor should invest in a particular company or not. A company's balance sheet also shows the strengths and weaknesses of a company. A company through its balance sheet portrays its financial position to the investors that it is a reliable company that possesses prosperous prospect and chances to grow. It also reflects whatever the goals have been set by the company will definitely be accomplished and delivered to the investors in the shape of cash or stock dividends. Birts also says that "the company must demonstrate its ability to trade for some time into future so that customers have confidence that it will be able to meet its commitments to them" (2001, p36). ...
Download paper
Not exactly what you need?

Related papers

How Impairment Testing and Off-Balance Sheet Liabilities Affect the Reliability of Financial Statements
When an instrument is not traded in an active market there is great uncertainty about the ultimate amount that can be realized from the instrument in a transaction between knowledgeable willing parties in an arms length transaction (Eipstein and Jermacowicz 2007).…
7 pages (1757 words)
Management Accounting - balance sheet and cost reduction
From the indexes given the cost of labour has increased over the years while the price of their products also tends to increase over the years, therefore the increase in the cost of labour has led to an increase in prices.…
10 pages (2510 words)
Rose Company Income Statement
Rose Company Income Statement Fiscal Year Ended December 31, 2007 Rose Company Income Statement Fiscal Year Ended December 31, 2007
2 pages (502 words)
Hence, an investor can enjoy higher returns by investing in Arthur Corporation rather than Lancelot Corporation.The net income as well as EPS of Arthur Corporation is higher than that of Lancelot Corporation. Hence, an investor can enjoy higher returns by investing in Arthur Corporation rather than Lancelot Corporation.Both companies have high levels of liquidity with a positive working capital…
5 pages (1255 words)
Should All Intangible Assets Be Shown in the Balance Sheet?
Accounting, as a profession, also grew in importance as the complications regarding the nature of the business also grew simultaneously. The use of creative accounting by the firm have necessitated a large scale changes to take place within accounting literature to suggest more radical approaches to handling many “ creative accounting” issues of importance. A major offshoot was that intangible…
9 pages (2259 words)
Corporate Reporting and Balance Sheet Financing
However there is truth in saying that no one has all relevant information and facts about Enron's failure and hence it cannot be said the OBSF is the lone factor responsible for the Enron debacle. Financial analysts are of the opinion that OBSF may be viewed as a scalpel in a surgeon's hands, which can be put to an effective use if handled properly. This paper presents a discussion on the ways of…
12 pages (3012 words)