BUSINESS

FINANCE

CHRISTINE MAE S. CAMACHO BSHM 3C

 Republic of the Philippines
CEBU TECHNOLOGICAL UNIVERSITY
ARGAO CAMPUS

Website: http://www.argao.ctu.edu.ph E-mail: cdargao@ctu.edu.ph

Phone No.: (032) 485-8290/485-5109 loc 1700Fax. N0.: (032)4858-290

Name: Christine Mae S. Camacho Prog.Yr.Sec. BSHM 3C

I. Balance Sheet
 Balance sheet is a financial statement that provides a snapshot of what a company owns and owes,
as well as the amount invested by shareholders. In addition, it can also be used with other important
financial statements to conduct fundamental analysis or calculate financial ratios.
 The balance sheet adheres to the following accounting equation, with assets on one side, and
liabilities plus shareholder equity on the other, balance out:

THE BALANCE SHEET FORMULA

ASSETS = LIABILITIES + SHAREHOLDER EQUITY

 Total assets is calculated as the sum of all short-term, long-term, and other assets. Total liabilities is
calculated as the sum of all short-term, long-term and other liabilities. Total equity is calculated as
the sum of net income, retained earnings, owner contributions, and share of stock issued.

CURRENT ASSETS CURRENT LIABILITIES

A short-term asset that a company expects to use up, convert into A short-term financial obligations that are due within one year
cash, or sell within one fiscal year or operating cycle. or within a normal operating cycle

Example: Cash, Account Receivable, Supplies, Inventory etc. Example: Accounts Payable, Rental Fees etc.
NON- CURRENT ASSETS NON- CURRENT LIABILITIES

Assets and property owned by a business that are not easily Are the debts a business owes, but isn't due to pay for at least
converted to cash within a year. 12 months. They're also called long-term liabilities.

Example: Long Term Investments, Land etc. Example: Bonds Payable, Long Term Loans etc.

SHAREHOLDERS EQUITY

It is the money that can be traced back to a company's shareholders or owners. Since it is equal to a company's total assets less its
liabilities, or the debt it owes to parties other than shareholders, it is sometimes referred to as net assets.

EXAMPLE OF BALANCE SHEET