6
The Balance Sheet
For the majority of non-financial people, the balance sheet is one of the more difficult financial statements to understand. Grasping the concept of the profit and loss account, which shows what has happened to a business or department over a given period of time, is one thing. The balance sheet is literally a snapshot of the financial standing of a business at a particular point in time.
This chapter will provide you with an insight into the meaning of a balance sheet, how it is constructed and its variable contents. It will also demonstrate the business value of having a strong or weak balance sheet, and just what that means to anyone who chooses to review and analyse business performance on the back of this particular ...
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