Balance Sheet UK Explained (How to Read a Balance Sheet & Understanding Balance Sheet Terminology)
In this video together we look at an example balance sheet and break this down by category.
Firstly we start with the assets section focusing on the non-current assets where I break down the difference between a tangible asset such as land and buildings and a non-tangible asset such as Goodwill and customer listings.
Next we move onto current assets due in less than 12 months such as Stock, Prepayments, Trade Debtors / Receivables, Cash at bank and Cash in hand and what all of the various current asset terminology means so that you can get a good understanding of the different types of assets and what the terms above are referring to. Here I also discuss liquidability on the balance sheet.
Then we move onto the current liabilities where I discuss accruals, trade payables, VAT liabilities, corporation tax liabilities and other liabilities that you may see sat on the balance sheet.
Finally we move onto non-current liabilities which includes the likes of loans due more than 12 months or accruals due in more than 12 months for example.
At the end of a balance sheet there is a section often referred to as the capital and reserves or equity. Here you will find any shares and profit or loss carried forward otherwise known as retained earnings carried forward. Here I also break down those terms for you so that you can gain a better understanding of what they relate to.
I hope you find this video useful but if you have any questions about the balance sheet just pop them below.
Legal Disclaimer - This video and any publication made by myself are not intended to serve as a substitute for consultation with a professional. Please do consult a professional if you have any queries around investing or financial matters, this video is for entertainment purposes only and should not be construed as advice in any format.
Пікірлер: 30
Great video. Thank you :)
This has helped so much with R&D work I have to do for different organisations around competitor analysis - thank you!
@RebeccasFinanceTutorials
Жыл бұрын
Thank you hun that's lovely I'm so glad it helped x
Very nice explanation but one thing that would be super helpful that I have not found anywhere on KZread is a walk through the Micro-entity Balance sheet that Companies House (UK) are looking for (I mean in particular the accounting information for someone who does not have or has not prepared a balance sheet to make reference to). I've tried matching up your explanations with their requests but find it quite confusing and difficult. Thanks
@joefranklin4468
Жыл бұрын
Hi Mark, did you ever find something to help you here? I'm in the same position. Cheers
Great video, just started the AAT level 2 and finding your videos very helpful!
@RebeccasFinanceTutorials
3 жыл бұрын
Aww thank you GrandChamp1992 :)
So very helpful better than any seminar attended 💫💫💫thank you kindly
@RebeccasFinanceTutorials
Жыл бұрын
Thanks Mike Murray x
@mikemurray9202
Жыл бұрын
You’re more than welcome 🙏 and much much deserved 🫡
great video!
@RebeccasFinanceTutorials
2 жыл бұрын
Thanks hun x
Good presentation thank you
@RebeccasFinanceTutorials
11 ай бұрын
You are most welcome 😊
Super helpful, thank you! I have a question - what are the main signs on a balance sheet of a company doing well or doing badly? Thnx
@RebeccasFinanceTutorials
2 жыл бұрын
Hi Nigel it's not that simple unfortunately because while a company might have a lot of assets and cash sat on their balance sheet, they might not be using the funds they have to their advantage whereas a company who has a lot of debt might have a good protected npv in future following the investment of money into assets for use in the business. Its always worth looking at the companys projected figures where possible for further analysis x
@nigelleahy6190
2 жыл бұрын
@@RebeccasFinanceTutorials Thanks Rebecca. Don't suppose you've covered NPV in any of your vids?
Is Called up share capital not paid an asset?
Hi Rebecca, firstly thank you so much for this no nonsense guide breaking down all the accounting jargon for us noobs!! I'm trying to file my own Micro Entity accounts and one thing I don't think was covered was something called "Provisions for liabilities" - can you explain what this means please?
@RebeccasFinanceTutorials
5 ай бұрын
Hi hun thank you for your lovely comment x I'll break it down in another video because it can get quite complicated
Hy please tell me what is p in the earning per share like 21p
Are the amounts on a balance sheet listed in thousands, hundreds, or tens? Example, if the balance sheet reads 12,397, would that actually be 12,397,000 pounds? Or is every balance sheet different? If so, how can you tell what increments are being used?
@RebeccasFinanceTutorials
11 ай бұрын
Hi Brian at the top of the balance sheet in each column it will state if this is £000 or simply £ for example which will give the rounding c
@business-advice-that-works
11 ай бұрын
@@RebeccasFinanceTutorials thanks again! I thought so. I’m from the US so when I was looking at a balance sheet from London I was a little thrown off. Thanks again!
excellent √ sent it to a client prior to a meeting and BOOM, they got it after trading for 20 years √
@RebeccasFinanceTutorials
Жыл бұрын
That's lovely Charlie I am glad it helped here x
There is an accountant, and then there is a business science strategist. But, you've got to walk first.
I'm so sorry for saying this but i think you are whispering, this is such a nice video. But, if you make your voice louder, i think it will be nice and can raised the view's 🙂
@RebeccasFinanceTutorials
2 жыл бұрын
Hi Dee thank you for your comment hun I will do my best to speak louder on future videos :)
@-UmarKhan
2 жыл бұрын
Raise the volume or clean out your ears