This topic of the financial management covers the importance of the balance sheet. The balance sheet helps you determine if your business is financially sustainable. It also provides an overview of how to compile and use this statement. Understanding the balance sheet is crucial in financial accounting.
This topic aims to increase your understanding of accounting principles and practices by solving the following problems:
- How do I determine if my business is financially sustainable?
- How do I assess what my business owns and owes?
- What is the accounting theory behind the balance sheet?
- Where do I get the information for the balance sheet?
- How do I draw up a balance sheet?
- How do I interpret the information in my balance sheet to ensure a prosperous business?
- How do I know if my business has the capacity to grow and remain financially sustainable?