General concepts of balance: assets, liabilities, balance currency

Balance is the main form of accountingreporting, characterizing the financial and economic activities of the organization. It reflects all the funds (in terms of their composition and sources of occurrence on a given date) in monetary terms. Its structure has the form of a table, in the left part of which are represented the assets - the composition of the property and its placement (money, receivables). And on the right side - liabilities, sources of education of all capital (reserves, accounts payable). Both parts consist of several sections, combining homogeneous groups of means, each kind is called an article and is located separately (in accordance with a certain line). The total amount of items (total) is the currency of the balance sheet, in which the amounts of the asset and liability are the same.

This equality is explained by the fact that each assetarises due to some action, as a result of which both the funds themselves and the sources of their formation are reflected in the balance sheet at the same time. Thus, the balance currency coincides in two parts because of different points of view on the same items. In one case, what is represented is the means, and in the other, the one who invested them.

The composition of the asset balance is divided into working andnon-negotiable means. In the passive, however, current and long-term obligations are singled out with a fixed period during which all tangible assets should be used and the existing debts repaid. However, assets, like debts, can change their original appearance. So, the use of money can be set a limit, and credit terms have been extended. All such changes need to be provided with information in the notes.

If the period of settlements with creditors was increased anddebtors, the balance currency can grow. Although this growth also indicates the expansion of the economic activities of the organization. To find out specific reasons, a financial analysis should be carried out taking into account the inflationary processes for existing stocks.

Balance sheet data is required for analysis and evaluation.economic condition of the company (in determining the total amount of obligations to counterparties). Using different coefficients of stability of the organization, you can see a vivid picture of its financial stability. When calculating many similar indicators, the balance currency is used. The formula for calculating the coefficient of autonomy, for example, has the following form: (KR + RRB) / WB, where KR is the capital with reserves; RPR - reserves of future expenses, and WB - balance currency.

In general, this report provides informationmanagers and all other persons involved in the management of the enterprise, about what the company owns, what its reserves and their correlation with material resources are, how they are used and who is responsible for their creation. The balance currency allows you to see the approximate cost of funds that can be obtained when the firm is liquidated. These data are used also by extraneous institutions, such as tax inspection, statistical bodies, creditors, etc.