Balance Sheets & Financial Accounting Items
Balance is the report showing the financial posissi of a company at a given time. These include the state of the financial position of assets, liabilities and equity of a company. By way of connecting certain items in the development of balance, we can assess the state of liquidity, solvency and financial flexibility. Therefore, the balance must be developed systematically by using the classification in accordance with generally accepted accounting principles.
- Classification and presentation of items in the balance sheet is as follows.
1.Current Assets. Presented in accordance with the order of liquidity, meaning post that soon could be withdrawn into cash is presented on the top.
2.Investment. Investments in subsidiary companies or affiliate companies should be presented separately.
3.Fixed assets. Can be divided into tangible fixed assets and intangible assets. Items of fixed assets presented in the balance sheet according to kekekalannya. Fixed assets that age served the longest at the top, while the fixed assets of an age shorter presented below.
