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A firm’s position in market is shown by its performance in a financial year. The performance is dependent upon various factors such as profit, loss, cash inflow and outflow, productivity etc. Such attributes are maintained and kept written records for future development and decision making purpose. Balance sheet is also one of the measures that deal with the record maintenance of monetary terms. Every commerce background student either might have dealt with the topic of balance sheet or they are still to learn it. In both the cases, some academic situations may come where students are required to prove their knowledge in terms of written context as assignments. Our Balance Sheet Assignment help services ensure that this work goes on smoothly with essential information documented.
Definition of a balance sheet
Statement of financial position of a firm in a specified period of time is represented by balance sheets. All the transactions done in that specified date are recorded in journals and such entries are posted to ledgers. Trial balance consisting of all personal, real and nominal accounts is recorded after balancing the ledger accounts. After transferring the nominal accounts to profit or loss section, the remaining accounts are depicted in balance sheets. That’s why our Balance Sheet Assignment help team fondly calls the balance sheet as statement of assets and liabilities and frame it as the mirror of a business.
While the assets surpass liabilities, the business is assumed to be running quite nicely.
Functions of a balance sheet
In the above mentioned definition a clear point of view for a genuine balance sheet is provided. Apart from it, in our Balance Sheet Assignment help, we define a few more functions of a balance sheet. They are:
Limitations of balance sheet
i. As it is past cost biased, it does not entertain the change in prices.
ii. Window dressing is required in balance sheets
iii. Historical cost speculated in balance sheet does not deliver required information
iv. Various assets are provided values as per different rules
v. Balance sheet lacks the ability of a worker of the firm.
vi. In reading the balance sheet a certain expertise is required and no ordinary worker can analyze it
vii. Some items in the balance sheet have a zero market value and do not affect the firm’s valuation. But their addition in balance sheet, certainly inflate the total value of assets.
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