Balance Sheet Demystified Extended

Balance sheet is the most commonly used financial statement. It reflects the assets and liabilities position of the company at the end of the year.

Authorized share capital is the total amount of shares that a company is authorized to sell. Par Value is the value per share established at the time of authorization. Par value of the share establishes the minimum legal capital for the company per share and the shareholder must invest assets equal to that amount (whether in cash or by transferring the assets to the company).

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