Report post

What are the components of a balance sheet?

A balance sheet has three primary components: assets, liabilities, and shareholders’ equity. Assets are anything the company owns that holds some quantifiable value, which means that they could be liquidated and turned into cash. These can include cash, investments, and tangible objects.

What information can be found on a company's balance sheet?

As noted above, you can find information about assets, liabilities, and shareholder equity on a company's balance sheet. The assets should always equal the liabilities and shareholder equity. This means that the balance sheet should always balance, hence the name.

What is a balance sheet based on?

The balance sheet displays the company’s total assets and how the assets are financed, either through either debt or equity. It can also be referred to as a statement of net worth or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity. Image: CFI’s Financial Analysis Course

The World's Leading Crypto Trading Platform

Get my welcome gifts