BALANCE SHEET

The balance sheet or statement of financial position

reports assets, liabilities, owner’s or stockholders’ equity WHAT TO SEE:
at a point in time. Some terms that apply to balance
 ASSET
sheets include:
 LIABILITIES
 EQUITY
1. OWNER’S
2. STOCKHOLDERS’S
 CURRENT ASSET
 ACCOUNTING
EQUATION
 Assets resources: things owned, and prepaid or
deferred expenses; examples include cash,
accounts receivable, inventory, prepaid
insurance, land, equipment, vehicles,
furnishings.

 Liabilities: obligations and deferred revenues;

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examples include accounts payable, loans
payable, wages payable, interest payable,
customer deposits, deferred revenues.

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 Owner’s Equity: a sole proprietorship’s assets
minus its liabilities.
Link to other online properties:
Portfolio/Website/Blog
 Stockholders’ Equity: a corporation’s assets
minus its liabilities; reports paid-in capital,
retained earnings, and treasury stock. Accounting Equation
Assets = Liabilities + Stockholders’
 Current Asset: will turn to cash within one year (Owner’s) Equity
of the date of the balance sheet (unless the
operating cycle is greater than one year). * Classified Balance Sheet groups
Current Liability an obligation that will become assets into the following
due within one year of the balance sheet date classification: current assets,
(unless the operating cycle is greater than one investments, property, plant and
year) equipment, and other assets.
Liabilities are classified as either
current or long-term.