Go back to: General discussion
Balance Sheet
We can define the Balance Sheet as a quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns, and the second part shows all the financing methods (such as liabilities and shareholders' equity). also called statement of condition.
Balance Sheet
• Asset section
The Assets section is a list of all that a business owns under its name. It may have its own classifications but all of those will be arranged according to which is easiest to use to buy goods. Cash is on top of the list followed by checks, notes and other written promises to pay made by other people. Other items which are not cash but which can be converted into cash will come after.
• Liabilities section
The second part of the Balance Sheet is the "Liabilities" section. This is a list of all that the business owes. It would include everything that needs to be paid to other people or businesses. All the information here are summarized in terms of monetary value. Typically, this section is classified into payments that are due during the current year and those that will be due beyond the current year.
• Equities section
The third part of the Balance Sheet is the "Equities" section. Looking at the assets, you might be inclined to think that the figures is what the business is valued at. You need to realize that you still need to pay off all the debts listed in the Liabilities section. What would be left after making all the payments is what is called "Net Worth" or the real value of the business. This is the amount that the owners of the business claim as their own and the shares and percentage of their ownership is also shown in this section
Week3: Blance Sheet
Balance Sheet
We can define the Balance Sheet as a quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns, and the second part shows all the financing methods (such as liabilities and shareholders' equity). also called statement of condition.
Balance Sheet
• Asset section
The Assets section is a list of all that a business owns under its name. It may have its own classifications but all of those will be arranged according to which is easiest to use to buy goods. Cash is on top of the list followed by checks, notes and other written promises to pay made by other people. Other items which are not cash but which can be converted into cash will come after.
• Liabilities section
The second part of the Balance Sheet is the "Liabilities" section. This is a list of all that the business owes. It would include everything that needs to be paid to other people or businesses. All the information here are summarized in terms of monetary value. Typically, this section is classified into payments that are due during the current year and those that will be due beyond the current year.
• Equities section
The third part of the Balance Sheet is the "Equities" section. Looking at the assets, you might be inclined to think that the figures is what the business is valued at. You need to realize that you still need to pay off all the debts listed in the Liabilities section. What would be left after making all the payments is what is called "Net Worth" or the real value of the business. This is the amount that the owners of the business claim as their own and the shares and percentage of their ownership is also shown in this section