Balance Sheet

Understanding Trade Receivables and Other Receivables in Balance Sheet

The Balance Sheet is considered to be one of the primitive sources of decision-making for companies. This is primarily because it enlists all the details that help stakeholders draw a reflection regarding the company’s financial position. In this regard, assets tend to be elementary classes because they tell the value of recoverable amounts from various …

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Understanding Prepaid Expenses in the Balance Sheet

Overview Accrual-based accounting is used across all organizations today to apply the matching principle of accounting. This is mainly done to match the revenues for a particular period with the subsequent expenses covered in the given time frame. This helps to capture the company’s profitability, over the given course of time, with much-needed accuracy. During …

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Non-Controlling Interest on Balance Sheet: Definition, Example and Calculation

Definition Non-Controlling Interest can be described as the minority ownership of one business in another business. A business is said to have a non-controlling interest in another business if the shareholder of that particular company owns less than 50% of the outstanding shares of the company. Therefore, because of the fact that non-controlling interest is …

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Off-balance Sheet Items (OBS Items) – What are they?

Introduction: Off-balance sheet items refer to those assets and liabilities that aren’t shown on a balance sheet. However, these assets and liabilities still belong to the company though they may not be directly associated with the company. Companies use this method of accounting to lessen the impact of ownership of certain assets and obligations of …

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What Are the Key Balance Sheet Items? 3 Key Items You Should Know

Balance sheet: The statement of financial position, also known as the balance sheet, is one of the financial statements prepared by companies at the end of the fiscal year. It constitutes of real account balances that do not close at the end of accounting year but rather, their balances are carried forward from one accounting …

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What is the Common Size Balance Sheet? (Explained)

Common-size financial statements are the financial statements that are prepared by the company by taking a base value for the purpose of comparison and displaying the result in percentages. These financial statements are prepared for internal purposes rather than for compliance with external stakeholder requirements All the values are expressed in the form of ratios …

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