Balance Sheet
Guiding Principles 1. Assets are “things” that the company owns that have economic value (cash, property, equipment, patents, etc.) 2. Liabilities are moneys owed to others 3. Net worth is what would be left over if the business owner sold all of the assets and paid off all of the liabilities
Assets Liabilities Shareholder Equity (Net Worth)
The balance sheet shows the financial position of a company on a certain date
THE PRINCIPALS ACADEMY 2022 104
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