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</center><p>The use of double-entry accounting keeps the balance sheet in balance. The left side of the balance sheet outlines all of a company’s assets. The amounts reported on the balance sheet are summations of the ending balances in the many asset, liability, and stockholders’ equity accounts The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity. This chapter provides a gentle introduction to balance sheets by showing how individuals can prepare their own personal balance sheets, and how similar these are to company  A Balance Sheet is a financial statement that shows the financial position of a fi mas on a specific date, usually on the close of the accounting period. You can think of it like a snapshot of what the business looked like on that day in time As such, the balance sheet is divided into two sides (or sections). It reports a company’s assets, liabilities, and equity at a single moment in time. Assets liabilities equity The structure of the balance sheet reflects the accounting equation: assets = liabilities + stockholders’ (or owner’s) equity. It reports a  describe the elements of the balance sheet: assets, liabilities, and equity; describe uses and limitations of the balance sheet in financial analysis; describe alternative formats of Figure The Balance Sheet The next is the income statement, shown in Figure, which provides information on the revenues and expenses of the firm, and the resulting income made by the firm, during a period. The period can be a quarter (if it is a quarterly income statement) or a year (if it is an annual report) If we ided that a depreciation charge, or expense, of £2, is appropriate, there would be two effects on the balance sheet: (i) the car (assets) would be reduced by £2,; and (ii) the equity would be reduced by £2, The basic balance sheet equation, shown below, would still balance. The Balance Sheet contains Introduction to Balance Sheet The balance sheet (also known as the statement of financial position) reports a corporation’s assets, liabilities, and stockholders’ equity as of the final  The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle. Image: CFI’s Financial Analysis Course. On the right side, the balance sheet outlines the company’s liabilities The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle.</p></translate>
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