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Balance Sheet And Income Statement Relationship Video Khan Academy Simple Al Template

Worksheet Details

  • CategoryBalance Sheet.
  • TopicSimple personal balance sheet.
  • AuthorHannah Stonham
  • PostedThu, Aug 22nd 2019 09:08 AM
  • Formatjpg/jpeg

The balance sheet is basically a report version of the accounting equation also called the balance sheet equation where assets always equation liabilities plus shareholder’s equity. In this way, the balance sheet shows how the resources controlled by the business (assets) are financed by debt (liabilities) or shareholder investments (equity). Investors and creditors generally look at the statement of financial position for insight as to how efficiently a company can use its resources and how effectively it can finance them.

A balance sheet helps individuals and business owners understand where their finances stand during a specific time period. A person reading a balance sheet can learn a lot about a business and its viability.

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