Balanseregningen

Balanseregningen, often translated as the balance sheet, is a fundamental financial statement that provides a snapshot of a company's financial position at a specific point in time. It follows the accounting equation: Assets = Liabilities + Equity.

Assets represent what a company owns, including tangible items like property, plant, and equipment, as well as intangible assets such as patents and goodwill. Current assets are expected to be converted to cash within one year, while non-current assets have a longer useful life.

Liabilities represent what a company owes to others. Current liabilities are obligations due within one year, such as accounts payable and short-term loans. Non-current liabilities include long-term debts and deferred tax liabilities.

Equity, also known as shareholders' equity or owners' equity, represents the owners' stake in the company. It includes share capital and retained earnings, which are profits that have not been distributed as dividends.

The balance sheet is crucial for investors, creditors, and management to assess a company's solvency, liquidity, and financial structure. It helps in evaluating the company's ability to meet its obligations and generate future profits. Any imbalance in the accounting equation indicates an error in the financial records.