Explore BrainMass

Explore BrainMass

    What information does a balance sheet provide?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What information does a balance sheet provide? How do accounting conventions and asset valuation affect measuring and reporting financial position? (Chapter 2)

    Reference:

    Atrill, P. & McLaney, E. (2008). Accounting and Finance for Non-Specialists.
    6th ed. Harlow, England: FT Prentice Hall

    © BrainMass Inc. brainmass.com June 4, 2020, 1:16 am ad1c9bdddf
    https://brainmass.com/business/balance-sheet/information-balance-sheet-provide-390360

    Solution Preview

    QUESTION

    What information does a balance sheet provide? How do accounting conventions and asset valuation affect measuring and reporting financial position?

    TUTORIAL

    A balance sheet is an accounting statement, prepared at a certain date, which provides information on the assets, liabilities and owners equity of a firm.

    The balance sheet provides information about the assets invested into a firm. The valuation, of the assets, typically follows the conservationism principle. This principle requires that items are value at lower of cost or market value. Assets are broadly categorised into two: current and fixed assets. This break down, of assets into categories is to obey the requirements under ...

    Solution Summary

    What information a balance sheet provides is determined. The asset valuation affect measuring and reporting financial positions is given.

    $2.19

    ADVERTISEMENT