A balance sheet can be presented in account form and report form, but first, it is important to have a basic understanding of the types of financial statements to prepare and why they are important.

Companies might choose to use a form of balance sheet known as the common size, which shows percentages along with the numerical values. This type of report allows for a quick comparison of items.

The balance sheet would thus be balanced. Yes, they are. That's because investors like to receive regular income in the form of cash dividends. In addition, a company may not wish to dilute the ...