What is Balance Sheet/Statement of Financial Position

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Inventories<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234"> <b>Current Liabilities&colon;<&sol;b><&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Prepaid Expenses<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234"> Accounts Payable<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Cash and Bank Balances<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234"> Accrued Expenses<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Investment in short term securities<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234"> Short term loan<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99">&&num;160&semi;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> <b>Other Assets&colon;<&sol;b><&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99">&&num;160&semi;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Goodwill<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219"> Investment in long term securities<&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> XXXX<&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99">&&num;160&semi;<&sol;td>&NewLine;<&sol;tr>&NewLine;<tr>&NewLine;<td valign&equals;"bottom" width&equals;"234">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"79"> <b>XXXX<&sol;b><&sol;p>&NewLine;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"219">&&num;160&semi;<&sol;td>&NewLine;<td valign&equals;"bottom" width&equals;"99"> <b>XXXX<&sol;b><&sol;p>&NewLine;<&sol;td>&NewLine;<&sol;tr>&NewLine;<&sol;tbody>&NewLine;<&sol;table><&sol;div>&NewLine;<p align&equals;"justify">The total of the two sides of balance sheet must equal&period; <&sol;p>&NewLine;<h3 align&equals;"justify">Benefits of Balance Sheet<&sol;h3>&NewLine;<p align&equals;"justify">The benefits associated with the balance sheet are as follows&colon;&period; <&sol;p>&NewLine;<p align&equals;"justify">• Through balance shareholders can judge that how their capital is being used by the management&period; In what type of assets their funds are invested to maximize the return&period; Shareholders through balance sheet review the financial position of the company and can decide to for further investments or divestments&period; <&sol;p>&NewLine;<p align&equals;"justify">• Lenders and creditors can judge the liquidity position of the company and make decisions regarding extension of credits and debts&period; <&sol;p>&NewLine;<p align&equals;"justify">• Management can decisively evaluate the financial position and take remedial measures if required&period; Balance sheet helps management in determining the future financial needs&period; <&sol;p>&NewLine;<p align&equals;"justify">• Employees can compare the remunerations with financial position and are in a better position to bargain with management for enhancement in remunerations&period; <&sol;p>&NewLine;<h3 align&equals;"justify">Limitations of Balance Sheet<&sol;h3>&NewLine;<p align&equals;"justify">Balance sheet may not depict actual financial strength or weakness of a company because the figures related to the fixed assets are reported in the balance sheet at historical costs&period; The real value of those assets may be more or less according to their current conditions&period; Moreover&comma; there may be some liabilities created through off-balance sheet financing such as operating leases etc&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;