What is balance sheet? How you come to know after seeing
balance sheet that economic condition is good or bad any
organisation?
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Answer Posted / pankaj modi
Balance sheet is the statement which shows Assets &
liabilities of an enterprise at aparticular period of time.
After prepare the Balance sheet statememnt, the
company has to check or analysis by Ratio analysis. some
Financial term as like working capital , Debt Equity ratio,
profitability ratio,efficiency ratio etc.thats give a
certain amount of financial position of a company or an
organisation to indicate company good position or bad.
e.g current Ratio=Current Assets/curremt liability
1.33 is an ideal position for Banks and Financial
institutions.
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