Читать книгу Reading Financial Reports For Dummies - Lita Epstein - Страница 26

The balance sheet gives a snapshot of the company's financial condition. On a balance sheet, you find assets, liabilities, and equity. The balance sheet got its name because the total assets must equal the total liabilities plus the total equities so that the value of the company is in balance. Here's the equation:

Assets = Liabilities + Equities

Assets appear on the left side of a balance sheet, and liabilities and equities are on the right side. Assets are broken down into current assets (holdings that the company will use in the next 12 months, such as cash and savings) and long-term assets (holdings that the company will use longer than a 12-month period, such as buildings, land, and equipment).

Liabilities are broken down into current liabilities (payments on bills or debts that are due in the next 12 months) and long-term liabilities (payments on debt that are due after the next 12 months).

The equities portion of the balance sheet can be called owner's equity (when an individual or partners closely hold a company) or shareholders’ equity (when shares of stock have been sold to raise cash). I talk more about what information goes into a balance sheet in Chapter 6.