What century did the balance sheet originate?

1 Current status of foreign research.

The origin of financial statements should be counted from double-entry bookkeeping, and the analysis of financial statements originated in the late 19th and early 20th centuries, and the earliest financial statement analysis mainly served the credit analysis of banks. Western developed countries.

Due to the recognition of the importance of financial statements and analysis, the theory and technology of financial statement analysis have advanced rapidly, and it has become a relatively independent applied science. Warren Buffett, the world's investment guru.

I once said, "When I invest in a company, I mainly look at the financial statements of the company." This is Warren Buffett's position as an investor, explaining the importance of interpreting financial statements.

University of Southern California, USA.

According to Leopld of the University, "Financial analysis is a judgment process that aims to evaluate the current or past financial position and operating results of a business, with the main purpose of making the best possible view of future conditions and operating performance**. ”

In 1531, Johann Gottlieb, a merchant from Nuremberg, Germany, published the book "A Concise German Bookkeeping", in which the world's first balance sheet was published.

Format. Nuremberg, Germany, at the beginning of the XVI century.

The economy is extremely prosperous, it maintains commercial relations with almost all European countries, and exports a large number of gold, silver, bronze, gem products, and wood to European countries. Especially Nuremberg and Venice.

The Italian duplex accounting method had a profound impact on Gottrib, who was born and raised in Nuremberg. At this time, the Italian double-entry accounting method had already produced the prototype of the balance sheet - the loan balance trial balance. So, in the book "Concise German Bookkeeping", Gottlieb borrowed money in Italy.

The balance sheet is a comparative statement, and each item of the balance sheet needs to be filled in the columns "Closing Balance" and "Opening Balance".

1.Fill in the information directly according to the balance of the G/L account.

The items in the balance sheet are mainly filled in directly according to the closing balance of the general ledger account. Such as the "Notes Payable" item. Fill in directly according to the closing balance of the "Notes payable" general ledger account; The "Short-term Borrowing" item is directly filled in according to the closing balance of the "Short-term Borrowing" general ledger account.

Jen Accounting**.

2.Columns are calculated based on the balances of G/L accounts.

Some items in the balance sheet need to be calculated based on the closing balances of a number of G/L accounts. For example, the item of "monetary funds" is calculated and filled in according to the total amount of the closing balance of the accounts of "cash in hand", "bank deposits" and "other monetary funds".

3.Fill in the column based on the balance of the active account.

Some items in the balance sheet cannot be calculated and filled in according to the closing balance of the G/L account, or the closing balance of certain G/L accounts, but need to be calculated and filled in according to the closing balance of the relevant detailed account to which the account belongs. Such as the "Accounts Payable" item. It is calculated based on the closing credit balance of the relevant detail account to which the Accounts Payable and Accounts Prepaid accounts belong.

4.Fill in the column based on the balance analysis of the G/L account and the balance of the detailed account.

Some items in the balance sheet cannot be entered directly or computationally based on the closing balances of the relevant G/L accounts, nor can they be calculated on the basis of the balances of the relevant active accounts. Instead, it needs to be filled in according to the balance of the general ledger account and the balance analysis and calculation of the detailed account, such as the "long-term loan" item, according to the balance of the "long-term loan" general ledger account minus the part of the long-term loan that will be due within one year reflected in the detailed account to which the "long-term loan" belongs.

5.Comprehensively use the above filling methods to analyze and fill in.

For example, the "inventory" item should be based on the total closing balance of "material procurement", "materials in transit", "raw materials", "packaging materials and low-value consumables", "turnover materials", "consumable biological assets", "inventory goods", "consignment processing materials", "consignment goods", "production costs" and other accounts. The amount is filled in after deducting the closing balance of the accounts of "consignment sales of goods" and "provision for inventory decline". Material adoption plan costing.

As well as enterprises that use the planned cost or selling price accounting of inventory goods, they should also be filled in according to the amount after adding or subtracting the difference in material costs and the difference between the purchase and sale prices of goods.

6.The contents of the notes to the balance sheet shall be filled in according to the actual needs and the analysis of the records of the relevant reference books.

For example. For the disclosure of contingent liabilities, the item of "discounted commercial acceptance bills" shall be filled in according to the discounting of commercial acceptance bills recorded in the account books for inspection.

The origin of the balance sheet belongs to the era of the Second Industrial Revolution, that is, in the 16th century.

The concept of a balance sheet is as follows:

1. The balance sheet is an accounting statement that summarizes all the assets, liabilities and owner's equity information of the company on a certain date, which indicates the economic resources owned by the company on a specific date, the economic obligations assumed and the claim rights of the company's owners to the net assets.

2. The balance sheet basically reflects the distribution of the company's property on a specific date, but it cannot reveal the property status before and after this date. From the balance sheet, investors can clearly see the various assets and liabilities owned by the company, as well as the interests that the owners of the company can have.

Simply put, a balance sheet is a record of a company's financial makeup.

What is a Balance Sheet? What's included in a balance sheet? The balance sheet is the most important one, which reflects not only the financial position of the company at the settlement date, but also the results of the company's various operating activities.

1. What is a balance sheet?

The balance sheet represents the main accounting statements of the financial position (i.e., the status of assets, liabilities, and owners' equity) of a business at a certain date (usually the end of each accounting period), and the balance sheet utilizes the principle of accounting balance. The trading accounts of assets, liabilities and shareholders' equity that comply with accounting principles are divided into two major blocks: "assets" and "liabilities and shareholders' equity", and after accounting procedures such as entries, transfers, ledgers, trial calculations, adjustments, etc., they are condensed into a statement based on the static enterprise situation on a specific date.

2. What does the balance sheet include?

1. Assets: The assets in the balance sheet reflect the resources that are formed by past transactions and events and owned or controlled by the enterprise at a specific date and are expected to bring economic benefits to the enterprise.

Current assets are cash or cash equivalents that are expected to be realized, ** or expended during an ordinary business cycle, or are held primarily for trading purposes, or are expected to be realized within one year or more from the balance sheet date, or have an unrestricted ability to exchange other assets or satisfy liabilities within one year from the balance sheet date.

Non-current assets are assets other than current assets. The non-current assets listed in the balance sheet usually include: long-term equity investment, fixed assets, construction in progress, construction materials, disposal of fixed assets, intangible assets, development expenditures, long-term amortized expenses and other non-current assets.

1. Balance sheetThe balance sheet, also known as the statement of financial position, represents the main accounting statements of the financial status of the enterprise on a certain date, and the balance sheet uses the principle of accounting balance to divide the assets, liabilities, shareholders' equity and other transaction subjects that comply with the accounting principles into two major blocks: "assets" and "liabilities and shareholders' equity". Second, the role of the balance sheetThe balance sheet is an important financial statement in accounting, and its most important function is to show the operating conditions of the enterprise.

In terms of procedures, the balance sheet is the end of the bookkeeping process and is the final result and statement that combines entry entries, postings and trial adjustments. In terms of nature, the balance sheet is a comparative relationship between the assets and liabilities of an enterprise or a company, and the equity of shareholders, which accurately reflects the operating conditions of the company.

As far as the basic composition of the statement is concerned, the balance sheet mainly contains the assets part of the left side of the statement, and the liabilities and shareholders' equity part of the right side of the statement. On the other hand, if the front-end of the operation is recorded in full accordance with the accounting principles and after the correct entry or transfer trial calculation process, the total amount of the left and right sides of the balance sheet will inevitably be exactly the same. In the end, this calculation is the total amount of assets = the total amount of liabilities + the total amount of shareholders' equity.

3. AccountingAccounting has two meanings, one refers to the accounting work, the other refers to the accounting staff, accounting work is based on the "Accounting Law", "Budget Law", "Statistics Law" and various tax laws and regulations as the legal basis to check the accounting vouchers, financial books, financial statements, engaged in the process of economic accounting and supervision, is to use currency as the main unit of measurement, the use of special methods, accounting and supervision of a unit of economic activities of a kind of economic management work; Accounting staff are the personnel who carry out accounting work, including accounting supervisors, accounting supervision and accounting, property management, cashiers and other personnel.

The balance sheet uses the principle of accounting balance to divide the assets, liabilities and shareholders' equity transactions that comply with accounting principles into two major blocks: "assets" and "liabilities and shareholders' equity". In addition to the internal error removal, business direction, and prevention of malpractice, its report function can also allow all readers to understand the business status of the enterprise in the shortest possible time.

Financial Management Fundamentals - 05 Balance Sheet Overview.