Balance sheet Hattingen is a financial statement that reports your company’s assets, liabilities and stockholders’ equity at a specific point in time. A balance sheet is one of the core three financial statements companies prepare, along with income and cash flow statements. It adheres to an accounting equation that equates assets with the sum of liabilities and shareholder’s equity. It gives a snapshot of your business’s finances and is used to calculate many important financial ratios.
The first section of a balance sheet is your company’s total assets, which encompasses anything your company has worth—cash, inventory, investments and more. Your company may also choose to categorize its assets into two or more sections based on how liquid they are, including current assets (those due within a year) and noncurrent assets (accruing over a longer period of time).
Liabilities on a balance sheet include any debts, taxes and expenses you owe. The most important liability for your company is your accounts receivable, which is the amount you are owed from customers who’ve purchased products or services, evidenced by promissory notes. You’ll also see other liabilities, such as a long-term loan or deferred tax expense.
The last portion of the balance sheet is your company’s shareholders’ equity, which is the cumulative stake owners and shareholders have in the company. You can find this in the chart of accounts as a subtotal under total assets, and sometimes as a separate line item called “retained earnings.” Retained earnings are all net income that your company decides to keep rather than distributing to shareholders as dividends. Bilanz Hattingen