Explanation
A balance sheet a report that shows the company assets liabilities and equity at a specific point in time
The 3 types of balance sheets are:
- Comparative balance sheets.
- Vertical balance sheets.
- Horizontal balance sheets.
The main parts of a balance sheet
- Current assets. Cash, as well as other assets you expect to turn into cash within the next 12 months. ...
- Fixed assets. Property or equipment the company owns and uses in its operations to generate income. ...
- Current liabilities. ...
- Long-term liabilities. ...
- Shareholders' equity.
