Balance Sheet in Banking Terminology means?
Balance Sheet:
The balance sheet is an accounting statement that summarizes the various assets, liabilities and equities held by a company on a specific date.
The equities are usually considered as part of the liabilities. The balance sheet is always drawn up at the close of business day, but is most relevant on the last day of the company's accounting period (the balance sheet date).
The equities are usually considered as part of the liabilities. The balance sheet is always drawn up at the close of business day, but is most relevant on the last day of the company's accounting period (the balance sheet date).
Balance Sheet Importance:
Balance sheet is an important documents not only for bank managers who sanction loan but is equally important to others who give credits and invest in equity etc. All creditors and investors all need to familiarize themselves with the assets, liabilities, and equity of a company. The balance sheet is the best place to find all information at one place. The reason as to why balance sheet is so called is that it is statement where Assets = Liabilities + Equity
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