Balance Sheet (Byte Size)

You are probably familiar with the accounting term 'balance sheet'. However, relatively few of you will probably really understand what a balance sheet really is or what it purports to show. In this course we shall see that the balance sheet aims to provide a statement of financial position by setting out the resources of the business, on the one hand, and the claims against those resources, on the other. The information contained within the balance sheet can be presented in various forms and in this course we shall consider the main forms of presentation. In drawing up a balance sheet, we employ a number of accounting rules or conventions. We consider these in some detail and discuss their limitations.

By the end of this course, you should be able to:

• explain the nature and purpose of a balance sheet
• define the terms asset, liability and capital
• explain the typical form and content of a balance sheet
• discuss the major conventions that underpin the balance sheet
• explain why a balance sheet on its own does not provide an adequate record of events

Syllabus

Introduction

Objectives

Section 1: Nature and Purpose Of A Balance Sheet

1.1 The Nature of Assets

1.2 The Nature of Claims

1.3 The Relationship Between Assets Liabilities and Capital

1.4 Other Important Conventions

Section 2: Capital Revenue and Expenses

2.1 The Effect of Transactions On Capital

2.2 The Link Between the Profit and Loss Account and the Balance Sheet.

Section 3: The Presentation of the Balance Sheet

3.1 Classification of Assets and Liabilities

3.2 Balance Sheet Formats.

3.3 Miscellaneous Points On The Balance Sheet

Review Activity

Recommended Reading

Tutor-marked Question Paper

Qualifications

On completion of your course, you will receive the dual award:

Award 1 is issued by Stonebridge Associated Colleges: Balance Sheet (Byte Size) Certificate

Balance Sheet (Byte Size) Certificate issued by Stonebridge Associated Colleges, to view a sample of the college’s award, please click here.

Requirements for Entry

There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.

Study Options

If you do not have Internet access, or would prefer to study this course via the traditional paper/postal based study method, you can find more information on the course by clicking on the link below.

Study Hours

This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.

The approximate amount of time required to complete the course is: 12 hrs.