Question

basic financial statement or description of balance sheet and two examoles how manager used this

how does managers used balance sheet?

describe the principals and how balance sheet is used on business?

Answer 1

Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point in time. Balance sheet includes assets on one side, and liabilities on the other. ... It is the amount that the company owes to its creditors.

Two examples, A major responsibility of the manager is to have a clear goal of growth and profitability and make sure the business is staying on the path to achieving that objective. Regularly using the company's balance sheet and income statement is the way to gauge the firm's performance along the way.

1.Managers use a balance sheet to analyze the liquidity and financial leverage of the company.

2.The balance sheet is used by the manager to determine if the business has enough working capital to sustain its operation.

Balance Sheet Principles means GAAP applied (to the extent consistent with GAAP) using the same accounting principles, practices, policies and methodologies used in the preparation of the Audited Balance Sheet, applied on a consistent basis with the Audited Balance Sheet.

The use of balance sheet in business is,

1. To determine if working capital is enough

2. To know the business networth

3. To see if the company can sustain future Operation

4. To identify if there is possible issuance of dividend.