What's a balance sheet? (6 min)

A snapshot of claims (right-hand side: liabilities + shareholders) on company assets (left-hand side: will convert to cash now or later). Three points: 1. equity is residual (equity = assets - liabilities), 2. Mixed model: historical cost is not fair value, and 3. We can use for ratio analysis (e.g., liquidity, TCE ratio)

Category:

Education

Tags:

• balance
• sheet
• finance

[jolymacho]

thanx bro

[fawz07]

thanks..really helpful

[marnold092]

I just finished an accounting class and watching this vid really helped solidify key concepts of accounting. Thanks for the post!

[yookayman]

This was helpful. Thank you.

[Shadyhunter04]

Awesome.