Understanding The Balance Sheet

June 28, 2013 5:00 pm1 comment
Understanding The Balance Sheet

The balance sheet is the core of the financial statements. The other financial statements, i.e., income statement, cash flow statement and statement of shareholders’ equity, are either feed into or are derived from the balance sheet. Being the core, the balance sheet summarizes these three components at a specific point in time : company’s assets, liabilities and shareholders’ equity. These three segments show what the company owns and owes, as well as the amount invested by the shareholders.

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