The Dual Structure of the Balance Sheet: Fiction and Stock

1. The Dual Structure of the Balance Sheet: Stock and Flow In general accounting, the balance sheet (BS) is often described as a “stock” statement, capturing the financial position of an entity at a specific point in time. In contrast, the profit and loss statement (PL) is a “flow” statement, reflecting the changes in revenue … Continue reading The Dual Structure of the Balance Sheet: Fiction and Stock