Showing posts with label Accounting. Show all posts
Showing posts with label Accounting. Show all posts

September 26, 2013

Understanding Financial Statements: The Balance Sheet - Business Management 101

The balance sheet is often described as a “Snapshot” of the current company’s financial condition on a certain date. It shows the “Assets” on the left, or top, of the balance sheet, and the “Liabilities and Owners Equity” on the right, or bottom. The Assets must balance out with the Liabilities and Owners Equity. Assets are what a company owns, such as equipment, buildings and inventory. Claims on assets include liabilities and owners' equity. Liabilities are what a company owes, such as notes payable, trade accounts payable and bonds. Owners' Equity represents the claims of owners against the...