Balance Sheet Flashcards
1
Q
What is a balance sheet?
A
It is an accounting report that details a firm’s financial position at a particular point in time by reporting its assets, liabilities and owner’s equity.
2
Q
What are some items that appears in the balance sheet?
A
Asset: Bank, Accounts Receivable, Inventory
Liabilities: Accounts Payable, Mortgage, Bank
3
Q
What is the structure of a balance sheet?
A
It has the assets on the left columns, divided into current assets and non-current assets. The total asset is at the bottom left side.
Liabilities and owner’s equity is on the right hand side, divided into current liuabilities, non-current liabilities and owner’s equity. The total equity is on the bottom right side and it is equal to the total assets.
