Accounting people know that all their activities are built around working with assets and liabilities. What are these two components?
Assets and liabilities in accounting are the first and second parts of the balance sheet. The set of results collected in a single list in the form of a table with two sides is called the balance sheet.
This table shows the amount of household assets and their education key in monetary prices for a certain period. The available funds are visible on the active accounts of the accounting department, and the balance on the active account shows how the funds are distributed, that is, where they are directed.
The sources of the formation of economic assets are visible on passive accounts. Passive account balances show how the funds came to be. It is imperative to remember that in accounting, assets and liabilities are the same money, only divided into different groups. This means that the sum of assets will always be equal to the sum of liabilities. The entire amount of assets (or liabilities) is the "balance sheet currency", but this term has nothing to do with the currency of other countries and serves only to determine the volume of economic activity of a particular firm. At any time, by looking at the balance sheet of the organization, you can get information about its monetary position. He also shows the names of the organization on the day of the balance sheet. The balance sheet has two parts. In the first part, property is presented broken down into education cells - these are liabilities, and in the second part, property is presented by type, arrangement and number of elements - these are assets.
Some people think that accounting is very complex and confusing. To some extent, this is true, because a large share of the accounting profession consists in researching complex instructions about which specific accounts and in what sequence one should record any work.
