Explain about the preparation and analysis of balance sheet.

Preparation and Analysis of Balance Sheet:

Balance Sheet is one of the significant financial statements of a company providing its financial status at any specified time. This is prepared at least yearly but may be completed so more frequently and on exact occasions while the requirement exists in connection along with making decisions relating large project investments and dividend distribution.

Balance Sheet is a statement of Liabilities, the Company’s Capital or net worth and Assets at an offered date. This shows the summary of the sources of the enterprise resources as well as the investment of such resources in different forms of assets.

With the Profit/Loss account, there the Balance Sheet is analyzed by using specific financial ratios that assists to reveal the financial and non-financial health of enterprise.