Want an insight into your assets and liabilities? There is only one thing that can make it easy, Balance sheets. A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. There are 3 different sections in a balance sheet and is represented using the following formula: Assets = Liabilities + Owner's Equity. Here, an Asset is a resource with economic value that will provide future benefits, whereas Liabilities are something a person or company owes. And the Owner's Equity is the value that an owner of a business has left over after liabilities are deducted. It is called a balance sheet because at any given moment each side of this equation must 'balance' out. The amount of equity available depends on the success or failure of the business. Download the PPT to know more.

Aparika Sharma

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