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It can be considered within this concept the movement that makes a body when you lean to one side and the other, or forward and backward. There is a child attraction that is known as seesaw or up and down and that is formed by a bar that can be made of metal or wood that is suspended on an axis and has seats at its ends so that a child can feel on each side and swing one by one from top to bottom.

Balance is also the movement that a ship experiences from port to starboard or vice versa. On the other hand, the concept refers to a hesitation or to the insecurity Regarding something.

However, the most common use of the word balance allows naming the comparative study which is carried out of a process or a situation, with the objective of anticipating its evolution.

The concept in economic terms

In a similar sense, a balance is, within the scope of Commerce , the confrontation between the asset and the liability of a company to know the state of business. This is an accounting document that offers information about the estate status on a certain moment.

For this, it is structured based on three main concepts: the active , he passive and the net worth .

The active contemplates the values ​​that the company has; This means that they are capable of generating money through their use, exchange or sale. It is worth mentioning that both material goods and rights owned by the company in question fall into this classification. In addition, within Active is the Non-current assets (goods and rights that have been acquired with the objective of remaining in the company for a long time, exceeding one year) and Current Assets (goods and rights that have been acquired to remain in the hands of the company for less than one year).

The liabilityOn the other hand, they are the economic obligations that the company has, such as debts, loans and purchases with deferred payment. A clear differentiation is established between those financial resources that are enforceable and those that are not, therefore the properties of the owners of the Capital are not considered while those belonging to third parties that are outside the company, are enforceable, and, therefore, they must be returned at a certain time. In turn, within the resources of others, a distinction is made between currents (reimbursement must be made within one year) and not current (They do not have an expiration date that falls within the 12 month limits).

The difference between the asset and the liability is known as equity and reflects the contributions of the shareholders plus undistributed results.

In short, net worth is the difference between what a company has and what it should and it is formed by the own funds, the result of the adjustments, the donations and the goods received as legacies.

When making the Balance, each of the assets must be properly classified and the gross costs and benefits obtained clearly to be able to finally complete the General Accounting Plan in which you can discover what type of year you have had, as to what has been achieved from the investments and if the objectives set by the company at the beginning of it have been achieved.

It is important to note finally that each company must present the balance sheet in such a way that the elements belonging to the asset and the liability are separated with their respective subdivisions explained above in order to finally become the result of the same. various commercial operations that the company has done.

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