Interpret the contents of a trading and profit and loss account and balance sheet for a selected organisation

Balance sheet
In financial accounting a balance sheet is a summary of the financial balance of a sole proprietorship, a business partnership, a corporation or other business organisations such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company’s financial condition, the balance sheet is the only statement which applies to a single point in time of a business.
A standard balance sheet has three main parts:
• Assets
• Liabilities
• Ownership equity/stockholder equity

The main categories of assets are usually listed first, and typically in order of liquidity. Assets are then followed by the liabilities. The difference between the assets and liabilities is known as equity or the net assets or the net worth or capital of the company and according to the counting equation, net worth must equal assets minus liabilities.

A balance sheet is typically used to detail the balance of income and expenditure over the preceding period. Therefore they are needed in organisation like Apple because it allows the organisation to easily determine the amount of the company’s working capital and whether the company is highly leveraged.

Assets are basically things that the organisation owns, liabilities are debts that the business owes and finally equity is the amount invested in the business usually by