Identify The Sections of a Classified Statement of Financial Position

Abstract

The era of globalization which is followed by the development of information technology that changes very quickly has affected business activities. This change will affect the company's policy in the field of asset and liability management. If there is no adjustment to the environment, the company concerned will lose in the current era of increasingly fierce competition. To be superior in the business world, resources are needed that are able to compete. With the superiority of its resources, a company will be able to formulate the function of collecting and distributing company funds through management (asset and liability management). The purpose of this research are to help users know the form of the statement of financial position and the components that make up the statement of financial position. In short, the statement of financial position can be interpreted as a summary of the condition of assets, liabilities, and equity of a business or company. Under certain conditions, statements of financial position are also often referred to as balance sheets. The accounting information provided by the American Accounting Association (AAA) is as follows: Accountingis the process of identifying, measuring and communicating economic information to permit informed judgment and decision by user of the information. Financial accounting is a series of processes that will produce information, namely financial statements that will be used by interested parties. Through the literature study method, the author explains the statement of financial position and the components that make up the statement of financial position