Dirkjan: Created page with "A '''''balance sheet''''', also known as a "statement of financial position", reveals a company's Assets, Liabilities and owners Equity (..."

2020-08-25T08:10:24Z

Created page with "A '''''balance sheet''''', also known as a "statement of financial position", reveals a company's Assets, Liabilities and owners Equity (..."

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A '''''balance sheet''''', also known as a "statement of financial position", reveals a company's [[Assets|Assets]], [[Liabilities|Liabilities]] and owners [[Equity|Equity]] (net worth). The balance sheet, together with the [[Income Statement|Income Statement]] and [[Cash Flow Statement|Cash Flow Statement]], make up the cornerstone of any company's financial statements.

{| class="wikitable"
![[Assets|Assets]]
!
!Liabilities and Owners' [[Equity|Equity]]
!
|-
|[[Cash|Cash]]
|\$6,600
|[[Liabilities|Liabilities]]
|
|-
|[[Accounts Receivable|Accounts Receivable]]
|\$6200
|[[Current Liabilities|Current Liabilities]]
|-
|
|
| [[Accounts Payable|Accounts Payable]]
|-
|
|
|[[Long-term Liabilities|Long-term Liabilities]]
|-
|
|
| [[Notes Payable|Notes Payable]]
|\$30000
|-
|
|
|'''''Total liabilities'''''
|\$30,000
|-
|
|
|
|
|-
|Tools and equipment
|\$25,000
|Owners' [[Equity|Equity]]
|
|-
|
|
|[[Capital stock|Capital stock]]
|\$7000
|-
|
|
|[[Retained Earnings|Retained Earnings]]
|\$800
|-
|
|
|
|
|-
|[[Assets|Total Assets]]
|\$37800
|Total [[Liabilities|Liabilities]] and [[Equity|Equity]]
|\$37800
|-
|}
The main formula behind balance sheets is:
<math> \text {Assets} = \text{Liabilities} + \text{Shareholders' Equity}</math>

This means that assets, or the means used to operate the company, are balanced by a company's financial obligations along with the equity investment brought into the company and its retained earnings.

Source: http://www.investopedia.com/articles/04/031004.asp
[[Category:mbi]]

Balance Sheet - Revision history

Dirkjan: Created page with "A '''''balance sheet''''', also known as a "statement of financial position", reveals a company's Assets, Liabilities and owners Equity (..."