Items of a balance sheet

It’s a statement wherein you can jot down your assets and liabilities.

• Pull together your bank statements and other proofs of the liabilities
• List down your assets like the bank balance, all investments, home value, and value of other assets.
• Take a sum of all th...

A liability takes money out of your pocket.

An asset increases the value of your money.

The cash flow patterns of poor, middle-class, and rich people differ based on their assets and liabilities.

Income Sheet:

Income: Money earned from various sources.

Expenses: Mone...

How much does the company owe, and how much does it own? Debt versus equity. It’s just the kind of thing a loan officer would want to know about you in deciding if you are a good credit risk.

A normal corporate balance sheet has two sides. On the left side are the assets (inventories, recei...