Audit and economical analysis

Accounting balance and its structure: assets, equity andliabilities

Based on accounting balance information, the financial and economic activity of the business entity and its results shall be assessed. To understand the content of the accounting records, it is important not only to have an idea of ​​how the balance sheet is structured, but also the logical and specific relationships between its items and certain indicators. The sequence of readings is also important in understanding the nature of the balance sheet.

The structure and content of the asset and liability of an accounting balance are addressed to users of information, primarily to external users. This is due to the high level of detail of the disclosure of the state of debtor and creditors' debts, the disclosure of the private equity and the formation of certain types of reserves created by current expenses or profits of the enterprise.