The balance sheet is a comparison of a hotel’s assets and capital as of a reporting date. A typical reporting date is the end of a company’s financial year. The assets of a balance sheet are the assets. All items for which the company’s chapter has been used are listed here. The liabilities are the equity capital and the borrowed capital, i.e. also liabilities, provisions or loans.
The rule of the balance sheet equation is that the two sides of the balance sheet must add up to the same total. If, for example, the liabilities side is higher than the assets side, assets have probably not been recorded. Perhaps a loan was taken out for a new machine, but this was not offset on the assets side.
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