What are balance sheet assets and liabilities? Assets and liabilities - what are they? Easy and simple Balance sheet consists of an asset and a liability

The concept of "balance" is used in many sciences (temperature balance, interaction balance), but most often in economics. It is especially important in.

Balance sheet - a table in which static accounting objects are grouped with their numerical values. In accordance with the consideration of accounting objects from two points of view - property and sources of financing of this property - balance consists of two parts: an asset, which shows property by type and group, and a liability, which shows the organization's equity and liabilities.

Within an asset and a liability, homogeneous accounting objects are grouped according to various criteria (for example, according to the principle of turnover - non-current and negotiable). The essence of the balance is reduced to equilibrium (quantitative equality) of its opposite parts - assets and liabilities.

Balance asset

The asset of the balance sheet reflects the fixed and working capital.

- the whole set of means and instruments of production. This part of the capital is characterized by the fact that it takes part in a number of production processes, gradually transferring its value to the finished product.

It means the totality of all those parts that take part in one production cycle, giving their value in full to the products of production.

To determine the fixed and working capital of the organization, consider the asset of its balance sheet. Fixed capital includes such a part of an asset as buildings, structures, transport; the rest - to working capital.

Balance passive

The legal status of an enterprise is characterized by its liability, which shows all of its obligations, the dependence on those who put their funds at its disposal is determined. Thus, the liabilities of the balance sheet determine the legal dependence of the enterprise on other organizations and persons.

The entire capital of this organization (,) is also placed in the liabilities of the balance sheet. The presence of capital in the balance sheet of an organization shows the degree of dependence on those who endowed it with capital.

The balance is a unity of quantity and quality, that is, a document that characterizes a particular organization from both the economic and legal aspects.

In a static position of the organization there can be such a state when the sum of the asset of its balance is equal to the arithmetic sum of the liabilities of the same balance (Table 1). This position of the enterprise shows that in this organization there are various kinds of property (asset) as much as is necessary in order to pay off all obligations (liability) lying on the organization, after which nothing will remain.

If the balance sheet liability is less than its asset by 100 rubles, then this means that upon liquidation of the organization, 100 rubles would remain free. This amount is considered as a result of accumulation within the organization. Let us agree to call this result profit. The organization commits itself to transfer it to the owner. That is why it is shown in the passive (Table 2).

The total of the asset is less than the total of the liability means that the organization does not have enough funds to pay off all its obligations. This shortage is expressed in the sum of the difference between the asset and the liability - we have 50 rubles. (Table 3). This loss must be reimbursed by the owner of the organization, since the organization acquires the right to claim the amount of the loss from him. That is why the loss is classified as a liability, where all rights of the organization to individuals and other organizations are recorded.

• neutral (when it has neither profit nor loss);
• there is profit - the result of accumulation within the organization;
• there is a loss as the absence of repayment funds on the organization's obligations.

The process of development of an organization, or dynamics, is carried out through individual actions - business operations. All business operations performed in an organization are reflected in the state of the property of this organization, the state of rights and obligations, that is, on the state of the asset and liability.

Types of balances

Balances are subdivided according to different criteria, for example:

• by time (introductory, initial, intermediate, final and liquidation);
• by completeness of information (general, private).

Opening balance compiled upon the emergence of an organization, approval of a firm, joint stock company, etc.

Starting balance compiled every year, in order to clarify the property status of the organization after a year's work and determine the qualitative composition of the property. The opening balance sheet, drawn up at the end of the reporting year, is final against the past year and initial against the coming year.

Interim (check) balance is compiled on a quarterly basis and may be adjusted at the end of the fiscal year.

Final (liquidation) balance sheet compiled upon termination of the organization's activities. It is drawn up by a special commission, which is entrusted with the liquidation of the organization.

Are common balance sheets contain information about the property, rights and obligations of the entire organization as a whole, and private - information about the property, rights and obligations of any particular part of the organization.

Accounting chart of accounts

Assets, along with liabilities, are one of the key concepts in the field of accounting. Knowledge about them is often applied in everyday life. A competent understanding of these accounting categories contributes to the correct formation and use of equity capital.

Let's figure out what a liability is.

Definition

Assets mean everything that does work for a person, allowing you to receive passive profit, provided that no effort is made. Liabilities are all that cause you to spend. In the event that it is possible to successfully invest in any progressive project, then an asset will be received. As an example, in this case, we can cite good-quality stocks that are steadily growing in price. Liability, on the contrary, forces a person to pay for something, for example, for a car issued on a loan, and so on.

But not everything is so simple. For example, for employees of the accounting department, a slightly different definition is more familiar. Within the framework of this interpretation, assets, along with liabilities, represent two categories in the structure of the balance sheet, in which any information related to the economic situation, as well as to the business of the enterprise, is recorded.

Information in the balance

By and large, the balance sheet is a kind of table from which you can easily find out the following information:

• What property does this or that company have.
• Who is the owner of the enterprise.
• What are the overall financial performance and results of the company.
• What activity is the main source of its funds.

Information about the property is entered into the left side of the balance sheet, that is, directly into the asset. An asset includes the following categories:

The right side of the balance sheet is the liability. The section is intended for sources of various types of property, for example:

• Own funds of the company in the form of authorized capital and retained earnings.
• Loans.
• Raised additional funds.

What is a liability? Let's see below.

Liabilities as a source of assets

Liabilities are sources of assets. This is because the use of liabilities leads to an increase in assets. That is why the table of liabilities and assets is called the "balance sheet", since both parts equally balance each other.

In this case, it is worth giving an example. So, when a certain company receives a loan, say, two million rubles, along with this, the following two events occur:

• These two million rubles appear on her accounts, which is reflected in the asset.
• These same two million are added to the debt on loans, which is indicated in the liability.

The international reporting system proposed the following formula, which clearly demonstrates a kind of relationship between assets and liabilities: "capital" plus "liabilities" is equal to "liabilities" is equal to "assets". The above formula gives an idea of \u200b\u200bthe capital. According to it, the capital is the share in the assets of the institution that remains after deducting the liabilities.

Now it becomes clearer what a liability is.

What types of assets are there?

Information about certain economic assets that the company possesses is reflected in active accounts. You can find out how the distribution of these funds takes place by looking at account balances.

The quantitative characteristics of the property, along with its value at a particular moment, are recorded in the asset, that is, directly on the left side of the balance sheet. Quite often, all property of an enterprise is called an asset. The structure of the balance sheet, which was adopted in Russia, implies the separation of assets into the following two classes:

• Current assets or those that are used to conduct the activities of the enterprise. These include financial assets along with raw materials, materials, spare parts, finished products and investments in securities for a short period of time. In addition, it includes value added tax on purchases along with investments in securities for short periods, debts from certain persons, as well as other assets.
• Non-current assets, that is, those that do not take part in the economic turnover. These include fixed assets, and, in addition, intangible assets, along with investments for a long period of time and products that are in the production process.

When it comes to assets, there are several things to note:

• The use of assets allows the enterprise to obtain economic benefits.
• The events giving rise to the opportunity for the benefit have already happened.
• The net asset price is made up of the difference between the total values \u200b\u200bof liabilities and assets.

What are the types of liabilities?

Financial liabilities are intended for fixing certain sources of funds formation. Directly balances on these accounts allow you to get an idea of \u200b\u200bthe occurrence of such funds. Any sources of formation of funds are denoted by the concept of "obligation".

So, the obligation is considered the debt of the enterprise that already exists at a certain moment, which was formed as a result of certain operations. The process of paying off liabilities leads to the fact that assets are reduced. For example, this can occur as a result of the payment of funds along with the provision of services, the replacement of one obligation with another, and so on.

Liabilities include equity or borrowed capital. This affects the liquidity of the balance sheet. Equity capital, in turn, consists of the authorized capital and the share capital. Direct liabilities can be short-term or long-term:

Assets and liabilities: personal family budget

It is no secret that knowledge of accounting fundamentals can always be useful not only for businessmen, but for any people who have their own savings and those who are engaged in housekeeping. The presence of assets with financial liabilities is typical for both family and personal budgets. Understanding their essence helps to comprehend the formation and distribution of home capital. Many people strive for financial independence when taking their first steps towards starting their own business, so it never hurts to know the key categories of accounting.

Not having economic literacy, it is often possible to make the wrong decision by mistake. Therefore, with regard to home equity, it is recommended to use a traditional accounting approach, albeit somewhat adapted. According to this approach, assets are everything that a person has, as well as what he uses. And it does not matter at all whether he spends his funds or, conversely, makes a profit. Liabilities lines represent all kinds of obligations and debts of a person. These, for example, include taxes in favor of the state along with gifts to employees for the holidays, and, in addition, retained earnings.

It should be noted, however, that the distributed profit does not exist as such, it is simply converted into assets. And the income that accumulates throughout a person's life can be called capital.

Assets are real-life objects and objects, for example, we are talking about documents, material values, and so on. The sum of liabilities, which are debts, overdue accounts and accumulated profits, are recorded on paper, in addition, they are stored in memory and in the mind, but are not material. Simply put, liabilities are something that cannot be touched.

Balance sheet structure

The balance sheet is a collection of information about the value of the property, as well as about the obligations of the enterprise, it is provided in tabular form. So, as already noted, the balance includes two sections: liability and asset. It should be emphasized right away that an asset should always equal a liability. It is for this reason that the form of the report is called "balance sheet".

The balance sheet is one of the most important forms of reporting, within which they judge the financial state of affairs in the enterprise, as well as what property it has and how much debts it has. The balance sheet includes information as of a certain date. Liability management is essential. Most often, according to the listed criteria, assessment is made at the end of the year or quarter. Actually, this is what distinguishes the balance from other important forms of reporting. For example, from the income statement, which contains information about the financial results of the enterprise for a certain period of time. This reporting form provides information for the first quarter or nine months.

So, the balance contains an asset and a liability, whose totals should be equal. The balance sheet asset includes two sections:

• Non-current assets that have been in use for more than one year.
• Current assets that have been in use for less than one year.

At the same time, current assets are considered more liquid compared to the second section, that is, they can be quickly converted into money.

In the event that the asset of the balance sheet reflects what property the company possesses, then the liability discloses directly the sources of formation of this property. The balance sheet liability includes the following three sections:

• Reserves and capital, that is, the owners' own funds.
• Long-term liabilities with a maturity of more than one year.
• Short-term liabilities that are payable within one year.

What is a balance sheet for?

This type of report is the financial entity of the organization. It is required so that persons who have entered into any relationship with the company or are planning to cooperate with it, could assess its financial position, as well as find out how well the business is going and whether the imminent bankruptcy is not likely.

Balance sheets are studied by banks in order to be able to assess the creditworthiness of borrowers. Such a report is submitted to the tax authorities and, in addition, to the statistical authorities. The balance sheet is presented to shareholders as a financial measure of the work performed by management.

Thus, the balance sheet of the accounting department acts as the main source of information for performing financial analysis, along with determining the stability of the economic situation of the enterprise and the possibilities of its uninterrupted functioning. As a rule, it is analyzed together with the income statement. For example, a special program is automatically used, due to which all the base coefficients that characterize the financial health of the organization are obtained.

What is a liability in the balance sheet?

The data that lead to the liabilities of the balance sheet make it possible to clarify the following questions:

• What changes have occurred in the framework of equity, and in addition, borrowed capital.
• How many long-term and, in addition, short-term funds were attracted into the company's turnover.
• Where did the funds come from that are directed to the formation of the company's property? The liability of the balance sheet of the enterprise can constantly change.

The financial condition of the institution largely depends on what funds it has at its disposal and where they were invested. The need for equity capital is determined by the requirements of self-financing of institutions. The authorized capital serves as the basis for the independence, and in addition, the independence of the company.

True, it must be borne in mind that financing the activities of an institution solely from its own funds is far from always beneficial for it. It should be borne in mind that in the event that the cost of financial resources is low, and the company is able to provide a higher level of return on investment than payment for credit resources, then, in the framework of attracting borrowed funds, it can increase the return on equity.

At the same time, if the funds of the organization are mainly created from short-term liabilities (liabilities), then its financial situation will be unstable, since capital of short-term use requires constant operational work, which should be aimed at monitoring their timely return. It is equally important to attract other capital into circulation for a short time. For this, a constant accounting of the liability is carried out.

From all this it follows that the financial position of the company largely depends on how optimal the ratio of debt and equity capital is. The development of a competent financial strategy is one of the main conditions for the effective conduct of activities at the enterprise. As part of the analysis of the sources of property formation, the organization needs to consider the absolute and relative changes in its own and borrowed funds. In this case, it is necessary first of all to answer the following questions:

• What funds are the main sources of formation of enterprise assets: own or borrowed.
• What is the direction of changes in the share of equity capital in the formation of balance sheet liabilities for the analyzed period of time.

With all this, it is important to note that the assessment of changes that occur in the capital structure may be different from the perspective of an investor or a company. For banking institutions, as well as other investors, it is considered more reliable if the share of equity capital of clients is higher. This circumstance completely excludes financial risks. Organizations, in turn, are interested in attracting debt investments. By receiving borrowed funds at a lower interest rate compared to the economic profitability of the company, you can expand production and increase the return on equity.

An internal analysis of financial conditions requires the study of the dynamics and structure of equity, as well as borrowed capital. It is also important to be interested in the reasons for changes in individual terms, giving them an assessment for the reporting period. Equity is the portion of a company's assets that remains after deducting liabilities.
This definition is presented in the form of the following formula: "capital" is equal to "assets" minus "liabilities". As part of the analysis of equity capital, the proportion of some of its components is determined, plus the dynamics of its composition for the last period is assessed. Now it is clear what is the answer to the question: "What is debt - an asset or a liability?"

Conclusion

In conclusion, it should be said that within the framework of maintaining a household budget and even more so a business, one cannot neglect the theoretical foundations of accounting. Especially when a person plans to start his own business, he will definitely need knowledge of basic concepts, which will provide an opportunity to feel more confident.

Assets and liabilities - what are they? Despite the seeming simplicity for many, these two concepts cause difficulties, and for others, it is something from the field of accounting. In fact, everything is not so scary. Your material well-being directly depends on how you distribute the ownership of assets and liabilities.

So what are liabilities? And what are assets?

Let's not go into the jungle of scientific financial definitions and terms. Let's formulate everything very simply and clearly.

Assets are what brings you money.

Liabilities are what takes your money.

Types of assets and liabilities

Assets

Assets include all your financial investments, which:

1. generate constant financial (passive) income
2. and / or increase in value over time.

There are actually a great many assets. Here are just the most famous and popular ones:

1. Bank deposits. Money invested at interest in the bank and making a profit.
2. Bonds. The profit is generated from the coupon income accrued in a certain period of time. Usually once a quarter or six months, a year. By purchasing long-term bonds, you can create a constant source of profit for years to come.
3. Promotions. Here we can make a profit in two directions at once. First, buying shares is buying a piece of business, which will increase in price over time, which means that the value of your shares will also increase. Secondly, when buying dividend shares, you have the right to count on an annual distribution of profits, in proportion to the shares you bought.
4. The property. Almost the most reliable way to make a profit. By investing in the purchase of this asset, you guarantee yourself a constant cash flow from rental income. And the value of real estate itself is only growing from year to year. There is a similar picture of earning income here as from buying stocks.
5. Mutual funds and other investments. Assets for the lazy. Suitable for those who do not want to puzzle over the question: where to invest their money? You put your finances under the control of professionals who have much greater knowledge of financial instruments, and, accordingly, can use your money more effectively. Of course, not for nothing. They will have to pay a certain percentage.
6. Borrowed money. This is also an asset. Of course, if you borrow for a reason. And you have your own financial interest. Otherwise, you have not an asset, but a liability.
7. Buying assets that will grow in value over time. What are these assets? Gold, silver and other precious metals. Collectibles: paintings, stamps, rare coins. In general, everything that is constantly growing from year to year.

Liabilities

1. Mortgage loans.
2. Consumer loans taken for the purchase of things, travel, entertainment.
3. All your movable and immovable property (apartment, car, household appliances, gadgets, things, etc.). Yes Yes. Everything you own and use in your daily life is liabilities.
4. Borrowed money. Even if you were given a loan out of friendship, given the fact that you only need to return the principal amount, without any interest, this is also a liability.

For a better understanding, let's fix it with an example.

Let's say you suddenly became the owner of 3 million rubles. It doesn't matter where. They fell from the sky, won the lottery, found on the street, received an inheritance.

How can they be disposed of?

You can buy an apartment with this money. In a good area, in good condition. In general, liquid real estate, for which there is a constant demand and which, if necessary, can be easily rented out or sold without problems over time.

After purchasing, you rented it out for 15 thousand a month. It is 180 thousand rubles a year. We remove utility bills and other current payments from this amount - we get about 140 thousand a year.

By purchasing this asset (real estate), we have generated a monthly constant income in the form of rent. Those. the asset will bring us money.

But this is not yet the most important thing. There is an invisible tax in the world called inflation. Those. every year, thanks to her, everything in the world is becoming more expensive. And real estate is no exception. Typically, it grows 15-20% per year. Even if you take a modest 15% increase in value per year, then after 3 years, your apartment will cost not 3 million, but 4.5 million. Those. in 3 years you will become 1.5 million richer.

And rent will only grow every year.

If we add up the total income from the increase in value and from the rent, we get that in 3 years you will become about 2 million richer.

And one could have acted differently. Many people adhere to the principle of money in life, "came easy, easy left." You think the same. And with the money that suddenly fell on you, they decided to buy an excellent (expensive) car for 3 million. As soon as you leave the car dealership, the car will immediately lose 10-20 percent in price. Add to this the annual costs for insurance, parking, washing, gasoline, maintenance, tuning, and more. This car will pull at least 300 thousand a year.

And if after 3 years you decide to sell it, you can get about half of its original cost for it. Those. in 3 years you have lost 1.5 million. Plus, each year of its operation costs you about 300 thousand, for 3 years it is about a million.

In total, 3 years of car operation will cost you 2.5 million.

In the first case, when we invested money in an asset, we received 2 million, and in the second case, buying a liability, we became poorer by 2.5 million.

Of course, these are the 2 most extreme cases. But I think it is in such contrasts that it will be easier for you to understand the difference between liabilities and assets.

What to do with assets and liabilities?

Of course, in life you cannot do without liabilities. Our entire life practically consists of liabilities and it is impossible to completely eliminate them. Clothes, food, technology - this is what we use every day. The main thing here is to find a balance. It is necessary to strive to ensure that the profit received from assets exceeds the cost of liabilities.

Of course, you will not be able to change the situation every second. This process is not fast. It takes many years.

To start:

1. Determine the size of your liabilities, i.e. your current needs or monthly expenses
2. See what you can refuse, or something you can cut. Let's say you spend a lot of money on entertainment (restaurants, clubs, etc.), or on the purchase of unnecessary or expensive things.
3. Now define your assets. Those. what bring you money. What monthly cash flow do they bring to you.
4. Now compare the difference between your assets and liabilities. Those. how much money you spend and how much money your assets bring you.
5. you need to strive to ensure that the income from assets exceeds your expenses from liabilities.

Assuming for a start, set a goal for yourself to reach an income from assets in the amount of 10% of your liabilities. Further by 20%, etc. Break the global goal into many smaller ones. So you will be the result of your little achievements and constantly go forward.

equality of asset to liability

Balance, balance

Equilibrium

The art of maintaining body balance when exercising on objects or keeping various objects in balance

A certain ratio - usually in quantitative terms - of parts, sides of a phenomenon, process, or any activity

The form of financial statements, which is a summary table of indicators, in monetary terms characterizing the state of funds - assets and liabilities - of any institution, enterprise

Comparative result of income and expense

Certain sized logs used for the production of pulp and paper

Detail of the movement in the form of a ring with a cross member, which regulates its movement

The position of the center of gravity of the firearm

Watch stroke regulator - a ring connected to a spiral spring

Consolidated statement of the state of the enterprise's receipts and expenditures on a specific date

Synonym for balance, balance

Comparing the income and expense of something

Comparative total of receipts and expenditures, production and consumption

Carpentry tool

Accounting scales

Regulator in the clockwork

Status of funds on the phone

What does accounting fail at the end of the quarter?

Acid-base ...

French "equilibrium"

Scorecard

Debit - credit

Goes to the accountant

Asset-passive

Accountant's report

State of equilibrium

Equilibrium in accounting

Balancing

Equilibrium in accounting

Accounting balance

Asset equals liability

He is let down by an accountant

Accounting Report

Oscillating mechanism in a watch

Equilibrium of the accountant

The first run when cutting a hut

The amount of money on the phone

It is driven by an accountant

Observe food ...

Total income and expense

Accounting term

When debit and credit converge

What the accountant brings

Ratio of income and expense

Accountant's summary sheet

Balance in an accounting way

Ratio of indicators

Accounting Report

Equilibrium

Comparative total of receipts and expenditures, production and consumption

Periodically compiled inventory comparing the asset and liability (debt) of the enterprise

Hours travel regulator

Accounting scales

... "making ends meet" in accounting

M. fr. preponderance, being in preponderance, in balance, in weight; balance, balance: the pole lies on balance, on weight, on overweight; keep balance on the tightrope, about the dancer, walk, dance in the air. Summary of income and expense, set of ends; verification of mutual trading accounts; comparison of the total value of vacation and imported goods; summary of the results. Carpenters, when cutting a hut on chairs, the first run along them is called a balance, on which the first crown is placed. Balance sheet accounts, conclusions. Balance, keep what, or keep yourself in balance, on the edge. He balances the sword on the bow; he balances while standing on a horse; dance, dance on a tightrope or in any other difficult position on a point, without support. Balancing cf. balancing w. action is. Balancer m. Balancer w. a buffoon, a junkie, a buffoon, a vesoplyas, a visoplyas, dancing on a tightrope or doing other things of balance; balance (balance), related to this case. Balancer m. Rocker arm, lever, swing in cars, transmitting piston movements to the leg (connecting rod), taken by the crank, for the crankshaft or shaft. Balance, rocker, rocker, lever, rocker

French "equilibrium"

What is summed up in accounting at the end of the quarter

Due to the double reflection of the property of the organization, the balance has a peculiarity inherent only in it, which consists in comparing property and obligations. The term balance comes from the Latin words bis and lanx, which in conjunction can be translated as two-part or double bowl, i.e. Equality balance symbol. Because of this, in modern accounting, the word "balance" has two meanings. Equality of value and quantity characteristics, i.e. balance. Representation in the form of property No. 1, both in real embodiment and in the form of a source of its formation, determines the appearance of the balance, which, in accordance with this, is divided into two parts. In the first, called an asset (from the Latin activus - active), the economic assets of the enterprise are classified according to their composition. In the second - liabilities, according to the sources of their formation. Of course, the totals of both parts are equal, since both reflect the same funds, classified and grouped differently.

The balance sheet asset includes two sections:

• 1. Non-current assets.
• 2. Current assets.

The first one presents the funds used for a long period of time (more than 1 year). In the second, property is more dynamic, rapidly changing its physical embodiment. The economic nature of an organization's property can be understood in different ways. Firstly, the resources of the enterprise have a legal or material form, you can check their availability and condition. Secondly, property is expenses by someone once made and received by an enterprise in the form of legal and material embodiment. Thirdly, these are the costs incurred by the enterprise itself, or when the enterprise is created by its owners for the sake of income in the future. The interpretation of a balance sheet asset as a list of the property of an enterprise is closely related to the control function of accounting. The second and third interpretations are based on the relationship between asset and liability in the circulation of capital, and also reveals the dependence of property on the purpose of creation and operation of the organization. (For a commercial enterprise, this is making a profit). Thus, the asset of the balance sheet is a reflection of economic assets in a material-cost form, which is closely related to the rights and obligations of the enterprise, with the purpose of its activities, implying the result of this activity. It should be noted that the property of the enterprise, presented in form No. 1 in the cost estimate, and the real value of the property of the enterprise may not coincide.

In the liabilities of the balance sheet, property is presented by the sources of its formation, by the form of its creation by the enterprise. The value of the balance sheet liabilities is the sum of the organization's liabilities, but these liabilities are heterogeneous in their economic essence. Some act as obligations to owners, others as obligations to third-party organizations and individuals. In modern accounting, the source of the formation of property is considered as a type of obligations of a certain size, therefore, the information presented in this part of the balance sheet is rather a means of attracting funds necessary for carrying out economic activities than a place from which the resources came. In the balance sheet, the organization's own and borrowed property is grouped into three sections:

• - capital and reserves;
• - long term duties;
• - short-term obligations.

In the first section, the organization's own funds are presented, in the other two attracted, or obligations to third-party organizations and individuals. The approach to the balance sheet, which interprets its liability as a set of obligations, allows one to explain the paradoxes in the placement of economic assets in the balance sheet. For example, the section "short-term liabilities" includes the amount of consumption funds, which are formed from profit, i.e. from the organization's own funds, but the latter undertook to spend these funds in a way that does not lead to the formation of new property of the organization, to transfer them to third parties. Therefore, despite the fact that these funds are the property of the organization, they belong to the composition of borrowed or borrowed funds.

The structure of the asset and liability is created in order of increasing degree of mobility. It is easy to see that the balance sheet asset begins with property, which can retain its form until the end of its existence and ends with the most mobile property, which can almost instantly take a different form (funds on current accounts and in cash, funds in a foreign currency account, etc. .). We can say that asset items are located in the balance sheet according to the degree of liquidity, i.e. depending on at what time this type of property can take in monetary form. Of course, the losses of the enterprise cannot be turned into money in any way, however, since they are subject to mandatory compensation, therefore, they can be considered the most unstable property.

The liabilities of the balance sheet, like an asset, are grouped according to the principle of increasing urgency of repayment of obligations. It begins with the basis of the company's own funds - the authorized capital. This item of the liability, also called the financial resources of the enterprise, is the most stable. The authorized capital of an enterprise is formed from contributions of participants and shareholders and is the property of the organization, dividends cannot be paid from it, its value must be preserved. The amount of the authorized capital of an enterprise is the basis of its market stability, and in order to protect the interests of third parties doing business with this enterprise, this foundation should not be undermined.

The authorized capital is followed by less stable items of own funds, then liabilities due to be paid off in more than a year and the balance sheet liability with short-term loans and payables. Items that can change the values \u200b\u200band weight in the total balance sheet in a very short time.

It should be noted that the mutual arrangement of sections and balance sheet items is not fundamental. In many countries with developed market economies (USA, Great Britain, etc.), the structure of assets and liabilities of the balance sheet is built in the reverse order, i.e. both parts of the balance sheet begin with the most mobile items. From the point of view of the structure of the balance, the most interesting is the justification of the priority of the economic essence of the article under its legal content. This priority can be easily explained by revealing the methods by which users of accounting information extract useful information from Form # 1. In other words, the structure of this form of financial statements is determined by its purpose and technical methods of its processing for the implementation of the analysis function and making management decisions based on it. The users of financial statements in general and the balance sheet in particular are investors, credit institutions and lenders, suppliers and customers, legislative and executive authorities. Each of these users, regardless of whether his interest is direct or indirect, is interested in information about the property of the enterprise, the composition and structure of this property. It should be noted that most often the user is not interested in the structure of an asset and a liability, but in the information obtained by analyzing this structure, in various ways to find answers to a very wide range of questions.