Balance Sheet

A Balance Sheet is a financial report that shows the financial position of a business at a specific point in time.

It summarizes what the business:

• Owns (Assets)
• Owes (Liabilities)
• Invested by the owner (Equity)

INFO

In Simple Accounting, the Balance Sheet is generated automatically from imported journals.

• Asset accounts are grouped under coa_type = assets
• Liability accounts are grouped under coa_type = liability
• Equity accounts are grouped under coa_type = equity

FORMULA

The Balance Sheet is based on the fundamental accounting equation

Assets = Liabilities + Equity

Retained Earning

Retained earnings represent the accumulated profit of the business that remains in the business after deducting expenses. For the Balance Sheet, retained earnings are included as part of Equity.

Example

• Balance Sheet Example

Scenarios

• Success Scenarios

  • 5.5.S1. User can view filtered balance sheet report.

• Failure Scenarios

  • 5.5.F1. Balance sheet report fails when user is not authenticated.

  Test Report

  https://simple-accounting-test-report.netlify.app/5.5