Balance Sheet - Summary

The balance sheet is essential in accounting. It is made up of two large masses, the assets and the liabilities. The assets correspond to the goods owned by the community, it is the image of what it owns (equipment, stocks , land, cash); The liabilities give the origin and the composition of the funds of the community, it is the image of what it owes (share capital, result of the exercise, loans, financial debts).These two items 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 date specific, that of the end of the financial year, on December 31 (calendar year).The balance sheet consists of: liabilities, on the right, which lists all the resources available to the community; assets, on the left, which designates the use that the community makes of these resources.An accounting balance sheet can be analyzed according to the following 4 blocks: Fixed Assets from the balance sheet: all the fixed assets necessary for the activity of the community (Machines, titles, production tools) Current Assets from the balance sheet : all the assets held by the community and intended not to remain there permanently (Stocks, receivables, etc.) Equity on the balance sheet: Share capital (debts to partners) and reserves. Other Debts on the balance sheet: obligations towards a third party resulting in a certain outflow of "cash" (Bank loan, supplier debts)The detailed balance sheet is presented with a reminder of the previous year, which makes it possible to compare several years.We find:Assets: fixed assets; Fixed assets correspond to assets intended to remain permanently in the community. Assets are said to be fixed as opposed to current assets because they are not as liquidable. Fixed assets are valued at their cost of purchase or production (if the community produces it itself) and certain assets can be depreciated.The asset is what the community owns , whether these elements are material or immaterial. In other words, these are the elements used by the community for the needs of its activity.On the liabilities side: permanent capital, including equity. The greater the equity, the greater the ability of the community to honor its long-term commitments. Equity capital, as a stable resource for the community, makes it possible to finance investments. Liabilities essentially represent all debts.The Summary Balance Sheet provided by the public accountant is attached in PDF form.