College education would not only provide you with the proper knowledge in accounting but will additionally allow you to socialize with future accountants, and give you advantage when following upÂ with the latest trends in the field of accounting.
Today’s modern accounting is called “Double accounting”, which means that every accounting change must be displayed on at least two accounts of which the first displays positive changes in the work of the Â company, and the other negative changes in the operation.
One of the tasks and purposes of the financial accounting is making financial statements – balance sheet. This is important financial indicator because through their balance sheets companies determine the status of the assets (fixed and current) as well as the sources of funds (equity and liabilities) that dispose companies in a particular accounting period. In other words, with the balance sheet are determined assets and liabilities the company has within a specified period of time.
In financial accounting the preparation of the balance sheet has always had the key role. Based on accounting data balance sheet provides an assessment of the financial and overall business and to make decisions regarding taking the current and long term business ventures.
The balance sheet presents an overview of all the tools and resources in a given day, grouped according to certain rules. It could be said that the meaning of balance sheet constantly grows, with the analysis of the balance assess and examine of assets, liabilities and capital the company is available in certain period.
In accounting the balance of condition is assembledÂ traditionally, which presents an overview of the assets and sources Â based on certain rules. This balance should contain the company’s name, date, two sides for separate disclosure of assets and sources i.e. liabilities. The side on which the assets are disclosed is called Active, while the side that shows the liabilities is known as Passive. They can be classified into two larger groups that disintegrate later. They are permanent and working (current) assets. The fixed assets include: intangible means , tangible means and long-term financial investments.
However, current assets Â include: financial assets, security values, claims on a various grounds, stock, inventory and short-term financial investments.