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RESEARCH PRODUCT

THE BALANCE SHEET - INFORMATION SYSTEM IN THE FINANCIAL DIAGNOSIS

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Financial statements are a basic element of the accounting information system because they represent the fundamental communication means of information towards users. The balance sheet, an element of the financial statements, reflects the financial position of the entity influenced by controlled economic resources, the financial structure, the company's liquidity and solvency; the information is useful to anticipate the company's ability to generate future cash flows, to anticipate future credit needs and the possibility of obtaining these loans, the way profits and future cash flows are distributed, to anticipate the company's ability to meet due financial commitments. From this perspective, the paper shows the main indicators that can be built based on the balance sheet and the usefulness of knowing them within the entity.