Archive for June, 2010

Accounting 101: Balance Sheet

June 11, 2010

shows the financial condition of your business as of a specific period of time.

It shows what the company owns [assets], what it owes [liabilities], and what it is worth [equity]

Assets = Liabilities + Equity [refer to 1st rule: debits equal credits – everything must balance to zero]

By comparing current figures to prior ones, you can see if the company is losing or gaining in value