Understanding Accounting Balance Sheets and Fixed Assets

Study Notes

The balance sheet is a mandatory accounting document for companies, which shows their assets and liabilities at a given moment.
The liabilities of the balance sheet include shareholders' equity, provisions for liabilities and charges, and net result.
The key resources of shareholders' equity are share capital, reserves and net income.
The liabilities of the balance sheet can have a negative economic value for the company.
An accounting balance sheet must show the company's assets, liabilities, and net worth.
An asset must be identifiable, have a positive economic value, be controlled by the company, and be able to be measured at its fair value.
Fixed assets are those that the company owns and uses in the long term, while current assets are those that the company uses in the current year or that are transformed (such as receivables).
The fixed asset register is a simpler way to keep track of the company's fixed assets.
Tangible fixed assets are those that can be touched, such as vehicles and equipment. Intangible fixed assets include the intangible assets of the company.
Fixed assets are intangible assets that are used in a company to generate income.
Fixed assets include things like furniture, computers, and vehicles.
Fixed assets can be immobilized and depreciated, which makes them a valuable asset.
Fixed assets are important because they can be deducted from a company's income each year.

Description

Test your knowledge of accounting balance sheets and fixed assets with this quiz. Learn about the components of the balance sheet, including assets, liabilities, and shareholders' equity, as well as the characteristics and management of fixed assets.