Yonais M. Rivera Velázquez # Edith Lamb ENGL 2050

Anyone interested in starting their own business or work in an accounting department must know the different financial statements. The financial statements are reports or documents that companies prepared in order to know what the financial situation in a long period. That is why that for a company to be successful and a good operation of its financial statements must be clear and precise. Some of these financial statements are the result status, balance sheet, change states of heritage, state of change of situation and the cash flow statement.

The balance sheet gives the structure of liabilities, assets and capital. This balance is essential and serves to analyze if a company has a bad financial situation. This is an important issue to discuss it because is of help in different areas of companies or business. As for example in the area of the administration can help in decision-making, then you know what is the economic situation of the same.

The concept balance in the accounting area refers to a comparative study. For many years the accounting has been used by companies to have a control in their economic and financial transactions. Today there are different types of accounting and states that make it much easier to control in economic operations of the companies. In the accounts the financial statements of companies measure and analyze that everything is proceeding normally.

That is why all people should have an idea of what it is and what might be the consequences of not doing so. Because of this would depend on the success or failure of a business. Then I will be developing the parts of this balance and their functions in detail. Because I believe that anyone who decides to make a tested must know the issue a little that is going to compose.

Accounting is a discipline that studies and presents the heritage of a company by means of accounting and financial statements. Also provides useful information and involves different analysis in the decision-making process. That is why you must have a record of financial transactions. In general with the accounts are controlled all the daily operations: sales, expenses, inventory and purchase among others.

The balance sheets and financial statements are reports or documents prepared by a company with the purpose of knowing the economic performance and the financial situation in the long period. The financial statements present information about the development and growth of the company, the administration and performance. In addition the owners can know the profitability of the contributions the financial progress.

With the financial statements you can also discover the liquidity that is pending with the creditors and the guarantee to comply with the obligations. On the other hand is over if successfully performed the payment of tax and contributions. Some features that you must have the information provided in these states are the usefulness and reliability. The basic financial statements are: the general balance, member of results, states of changes in the heritage, state of change in the financial situation, status of cash flows among others.

The balance sheet shows clearly the value of each of the obligations and properties of a company and business. As mentioned in the introduction to this balance consists of three parts the assets, liabilities and capital or equity. The balance sheet is based on the formula of asset is equal to liabilities plus equity.

In conclusion I think that a good administrator or accounting must be informed as to the importance of the balance sheet. Having investigated more depth on this topic has helped me to better understand the process of the same and to acquire greater knowledge. Since the accounting and its functions are extremely important. Both the accounting as its financial statements could decide the future of a company if it is not working correctly. It is a tool of great transparency that informs us the positioning economic one that has the company. Why presents the different performances of the same.

Reflection

 Definición.de. (s.f.). Definición de contabilidad general. Recuperado el 4 de marzo de 2016 de  Importance of (s.f.) importance of the balance sheet. Retrieved 13 February  SoyConta. (2013). The balance in the accounting. Retrieved on 4 March 2016 of