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Emma Rudd BMA

Business Finance, Balance Sheets _
What is a Balance Sheet? ­ Text Book
A balance sheet is a financial statement recording the assets (possessions) and
liabilities (debts) of a business on a particular day at the end of an accounting period.
The balance sheet only represents a…

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Emma Rudd BMA

balance sheet. The distinction between the two categories is based upon the time the
assets are held within the business.
1. Fixed Assets. These are the assets owned by a business that it expects to retain
for 1 year or more. Such assets are used regularly by…

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Emma Rudd BMA

However at the same time the business will have additional assets recorded on its
balance sheet (in this case vehicles initially valued at £575,000). Thus this
transaction will not cause the balance sheet to become unbalanced.
Alternatively the business might sell a fixed asset for cash. In…

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Emma Rudd BMA

The figure against which This figure is termed net Private limited companies
capital is balanced assets (which is total assets balance their capital
less all creditors whether against the net assets
due for payment within one employed figure and so
year or over a longer long term…

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Emma Rudd BMA

then leasing them back. Many retailers have negotiated sale and leaseback deals
on their high street properties.
Businesses may maintain the value of intangible assets on the balance sheet at
what might be excessive levels to increase the overall value of the organisation.
This tactic is only…

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Emma Rudd BMA

The Balance Sheet ­ Class Notes
The balance sheet is a snap shot of an organisations assets & liabilities at a particular

Balance Sheet Terms
Fixed Assets
Items which have a long term function i.e. over a year and can be repeatedly used.
Property and machinery…

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Emma Rudd BMA

Intangible Assets
Intangible assets such as reputation and goodwill are very subjective, so in general they
are not shown on the balance sheet, although a brand name is a major asset it is not
recognised in such accounts. However a value will be calculated if there is…


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