The balance sheet
Assets, liabilities, and equity.
5 min · Intermediate · Lesson 3 of 10
Step 1 of 4
The balance sheet equation
Assets = liabilities + shareholders' equity. What a company owns is funded either by what it owes or by what its owners have put in and kept.
- Assets: cash, inventory, buildings, equipment, investments.
- Liabilities: debt, money owed to suppliers, other obligations.
- Equity: what's left for shareholders after liabilities.
For entertainment and education, not investment advice.