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Level 4

Balance Sheet

Hello,

 

I printed a balance sheet report (cash basis) for the whole year 2018. The number of the Total Fixed Assets and Total Liabilities & Equity match. Is this a good sign that all the entries I made for the year 2018 are correct? My yearly reconciliation match as well.  How can I read my balance sheet  and know it is correct?

 

Appreciate all the help/answers.

 

Thank you,

1 Comment
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Level 15

Balance Sheet

The balance sheet is a good start, if total assets, equals the total of liabilities and total equity

if means that the entries you made were correct in form, whether they were correct for the transaction is something you have to look at individually

 

The balance sheet is a listing of worth as of that date.  It provides you with some measure of comparison, debt to equity, debt to assets, short term debt to current assets, etc etc

 

reading the balance sheet

https://www.investopedia.com/articles/04/031004.asp

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