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← Introduction to Financial Analysis

Part I. Financial Statements and Ratio Analysis and Forecasting

2: Financial Statements Analysis- The Balance Sheet

9 of 150 · 68 words

From Introduction to Financial Analysis by LibreTexts (Kenneth S. Bigel, Touro University), used under the CC BY 4.0 licence. Written for a general audience, not for NEPSE.

What a balance sheet balances

AssetsCurrentcash, inventory, receivablesNon-currentproperty, plant, investments=Liabilitiesdebt, payables, provisionsEquitycapital + reservesAssets − Liabilities = Equity = book value
Everything the company owns was paid for either by lenders or by shareholders. That is why the two sides are always equal.
  • 2.1: Chapter Two- Learning Outcomes
  • 2.2: The Finance in the Financial Statements
  • 2.3: The Balance Sheet
  • 2.4: Sample Bookkeeping Entries
  • 2.5: Current Assets - Inventory and Accounts Receivable
  • 2.6: Financial Claims Hierarchy
  • 2.7: Interest Paid on Bonds and Dividends Paid on Stock
  • 2.8: Bankruptcy
  • 2.9: The Balance Sheet, Net Income, and the Common Shareholder
  • 2.10: Corporate Goals
  • 2.11: Words and Numbers (An Aside)
  • 2.12: Chapter 2 Review Questions

This chapter at LibreTexts (Kenneth S. Bigel, Touro University). Tables and text are reproduced; images, videos and quizzes are not.