Accounting Balance Sheet - Synthetic

The balance sheet is essential in accounting. It is made up of two large masses, assets and liabilities. The assets correspond to the goods owned by the community, it is the image of what it owns (materials, stocks , land, availabilities); The liabilities give the origin and composition of the community's funds, it is the image of what it owes (share capital, result of the exercise, loans, financial debts).These two items are balanced.The accounting balance sheet is a financial document giving an image of the community's assets at a time t, which is a date specific, that of closing of the financial year, December 31 (calendar year).The balance sheet consists of: the 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 of the balance sheet: all the fixed assets necessary for the activity of the community (Machines, securities, production tools) Circulating assets of the balance sheet : all assets held by the community and intended not to remain there for the long term (Stocks, receivables, etc.) Equity in the balance sheet: Share capital (debts to partners) and reserves. Other Debts in the balance sheet: obligations towards a third party generating a certain outflow of “cash” (Bank loan, supplier debts)The detailed balance sheet is presented with the reminder of the previous year, which allows several years to be compared.We find:As assets: fixed assets; Fixed assets correspond to assets intended to remain in the community for the long term. The asset is said to be fixed as opposed to the current asset because it is not as liquidable. The fixed asset is evaluated by its purchase or production cost (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 capacity 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.