Every accountant must know: “What is a balance sheet?”. The balance sheet is a tabular version of the reflection of the financial performance of the organization on a certain date. In the most widespread form in the Russian Federation and some other countries, the balance sheet consists of two equal parts, one of which shows what the organization has in monetary terms (balance sheet asset), and the other — from what sources the organization acquired it (balance sheet liability). The basis of this equality is the reflection of property and liabilities by the method of double entry in accounting accounts.
Balance sheet, compiled on a specific date, allows you to assess the current financial condition of the organization, and the comparison of the balance sheets compiled on different dates — to track the change in its financial condition over time. The balance sheet is one of the main documents that serve as a source of data for the economic analysis of the enterprise.