Can someone check this for me thanks....
what information is the most valubale in a balance sheet?
my answer:
the most important type of information in a balance sheet is the overall or result after using the formula:
assets = liabitlities + equity then also the end result of the income statement. ALL is important to know what is the profit of any company.
1 answer
This is a matter of opinion. With all the creative bookkeeping, unreliable accounting and writeoffs of losses going on these days, and the debacle of Enron, there isn't much in a balance sheet that one can trust. Assuming that liabilites are a small fraction of capitilization, I consider earnings to be the best indicator for some companies, and FFO (funds from operations) from others. Some accountants believe that Return on Assets Employes (ROAE), expressed as a percent, to be the best indicator of corporate health.
3 answers