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What Does a Balance Sheet Say?

Posted by Megan Valenzuela Posted on Aug 29 2017

A balance sheet reports the dollar amounts of your business’ assets, liabilities and equity as of a specified date.

Assets include cash, inventory, investments, land, accounts receivable, buildings, equipment, goodwill and other intangible assets.  Generally assets will be reported at costs or lower due to depreciation. 

Liabilities include debts and other obligations of the company.  These might look like loan amounts, accounts payable, warranty obligations and taxes due.

Equity or stockholder’s equity reports the amount of assets that are from the owners.

In the end, the balance sheet allows a company to determine the amount of working capital.