BALANCE SHEE1 Essay

Submitted By mrtarheel919
Words: 1909
Pages: 8

BALANCE SHEET JIMMY DAVIS MAY 4, 2014 ACCT 302

I am writing this paper today so that we can get to know more about balance sheets. First of all I would like to discuss my pleasure in how one day I would like to be a entrepreneur and open a store that sell sneakers are a business that is in that type of field. So in order to open a store you would need to keep a record of my financial sheets which has my balance statement in my folders as well. Most people say that accountant is the hardest when it comes to running a business. I would say that it might be hard when it comes to dealing with balance sheets I have to say that it’s the hardest to get the numbers accurate. I personally think that if I have to do the balance sheet as well as run the store I might be off on some numbers. And I know when starting a company I have to stay doing the balance sheet because in order to keep this going it’s important to understand that to get the business documents all on the right tracks. I would have to say that facts shows when it comes to doing balance sheets and all other paperwork’s for the company it’s like a project you have to make sure you understand what you are doing and make sure what you is producing is gaining the company money and not losing the company money, I know for a fact that you can’t get every number accurate because it’s some things that are not documented. Therefore as you read this essay you will learn the different value of the balance sheets, so that you may understand more about the balance sheet and what you need to figure out from the sheet.
First of all I would like to say that before you think about trying to establish a balance sheet that you may have to think outside the box because to have a company exact document with the right value of the company is impossible. Fact shows that you must have the factors of the assets, liabilities, owner equity and they may be other values that may have to be calculated to reach the accurate total on the sheet. Furthermore the tactics used when coming up with the figures may be changing at a different type of rate depending on what type of market it is and how they changes in the economy and the figures that keep changing. With that being said the figure that you come up with may only be for the time that it was produced.
When writing a balance sheet it must be defined as a financial statement that identifies the company assets and liabilities of a company. Usually in this case when you subtract the assets away from the liabilities from there the net worth is calculated and then the value of the company is determined and is given to the owners of the company and then the sheet shows that the balance for that particular date. Although these documents are recorded it may just be for that particular day it could be for that month are a different one depending on what dates you’re looking for. Most companies choose a date that most of them can benefit from.
Also a company uses balance sheets to determine the credit for the company and whether or not other companies would like to invest in them. In some companies they say these documents are very important which the head people in companies like for instance the managers may keep this special document in file cabinets in case they need them for a later date. Most companies like to calculate the information so they can format it the right way so they present them just in case it needs to be used in a financial presentation. Other things that have been made like basis of depreciation, stock and the cost of goods sold. And when you add these into the equations and you calculate then it would make a total difference to the balance sheet.
When it comes to the accuracy the balance is valuated because the methods that are used when calculating specific items into the results accumulated. Another thing you must learn about in accounting is capitalsation which mean the cost is…