Assets are quantifiable things — tangible or intangible — that add to your company’s value Liabilities are what your company owes to others, whether that’s an investor or a bank that issued a loan ...
The balance sheet provides a look at a business at a snapshot in time, often at the end of a quarter or year. In some cases, the accounts on the balance sheet -- assets, liabilities, and equity -- can ...
The three primary sections of a balance sheet are assets, liabilities and stockholders' equity. Liabilities and equity are the two sources of financing a business uses to fund its assets. Liabilities ...
If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.
Liability and equity share represent two conflicting elements of a small business. A liability is any debt the company owes. Equity share is the value of the company's shares. Since equity share ...
Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. As the name implies, a balance sheet should reveal ...
An asset is anything, tangible or intangible, that has economic value to its owner or could have economic value in the future.
Quick ratio: Calculated by dividing current assets (excluding inventory) by current liabilities. By excluding inventory, the ...
The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.
Many investors look to the amount of income a company is able to produce from given investment of resources as a measure of its fundamental strength. Calculating returns as a percentage of total ...
There are a multitude of financial ratios used by investors to measure the health of a company. Some measure cash flow and profitability, while others are used to determine the health of a company's ...