Balance sheet total / Total assets

The balance sheet total is the last line of the company's balance sheet labeled "total". Essentially, it shows how much total assets the company has after taking inventory, accounts receivable, and everything else into account.

According to accounting rules, it is business year in the end it is mandatory for all companies Annual Report making it what it is profit and loss account besides a fundamental part of the balance sheet. 

The balance sheet is a statement that shows the composition of the company's assets at a given time (assets), as well as the financing resource of these assets (liabilities). A balance sheet is usually prepared after the end of the year, but otherwise it can be prepared at any time during the year, for example, if a bank for borrowing it is necessary. 

The balance sheet groups the company's assets according to various aspects and records them for a specific time. Grouping criteria can be, for example, appearance, origin and origin. 

They are included in the balance sheet assets (assets) and the liabilities (liabilities) too. In the last line of this, the result of all asset and resource is the "total" line, which is the balance sheet total. This tells you how much assets the company is working with inventory, funds, receivables and taking everything else into account. 

An important point is that the balance sheet total of the asset and resource must always be equal. This is due to the fact that in this breakdown it is the same amount of money, but the grouping is different.

If these two amounts do not match, then something is wrong, an error occurred somewhere during the preparation of the balance sheet. In such a case, the general ledger can help. The general ledger is a summary for a specific time that shows the totals of the "owes" and "requires" pages in the various general ledger categories. In this way, errors in the balance sheet total can be effectively checked. 

The operation of a business is well characterized by using the balance sheet total indicators multitude can be formed. Such an index is, for example, capital intensity or that return on assets. The balance sheet total also serves as a general measure, among other things, it is also used to categorize companies according to their size.