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 or book value = assets minus liabilities
Assets Liabilities Shareholder Equity (Net Worth)
-
=
The balance sheet shows the net worth of a company on a certain date
81
THE PRINCIPALS ACADEMY 2022
Made with FlippingBook Annual report