The balance sheet is the fundamental financial statement that represents company’s financial position
and is the basis for estimating the security of business. Basic elements of balance sheet are
assets, liabilities and owners equity. The structure of assets, liabilities and equity is especially important,
together with the correlation and interdependence of assets, liabilities and capital. In the
context of business quality, besides security, efficiency of business is also very important. We
usually define efficiency of business as an ability of achieving specific goals. Business goals can
be different and that means that efficiency of business depends on a set of principles and defined
goals. Business profitability is the most often stated goal. If we understand efficiency in this way it
is measured by profit and loss account. While balance sheet represents the financial position in a
particular moment, income statement (or profit and loss account) represents company's performance
for a particular time period. Basic elements of this statement are: revenues, expenses and their
difference which can be profit or loss
The balance sheet is the fundamental financial statement that represents company’s financial positionand is the basis for estimating the security of business. Basic elements of balance sheet areassets, liabilities and owners equity. The structure of assets, liabilities and equity is especially important,together with the correlation and interdependence of assets, liabilities and capital. In thecontext of business quality, besides security, efficiency of business is also very important. Weusually define efficiency of business as an ability of achieving specific goals. Business goals canbe different and that means that efficiency of business depends on a set of principles and definedgoals. Business profitability is the most often stated goal. If we understand efficiency in this way itis measured by profit and loss account. While balance sheet represents the financial position in aparticular moment, income statement (or profit and loss account) represents company's performancefor a particular time period. Basic elements of this statement are: revenues, expenses and theirdifference which can be profit or loss
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