The Balance Sheet is arguably the most important of all financial statements. It is a financial snapshot of a company's health at a specific point in time as measured in terms of assets, liabilities, and owners' or shareholders' equity. It allows you to see what a company owns as well as what it owes to other parties. People who might be interested in the Balance Sheet include creditors, investors, company management, suppliers, customers, competitors, government agencies, and analysts. The Balance Sheet is closely connected to the other key financial statements – the Income Statement and Cash Flow Statement.
This course walks you through a Balance Sheet and its key components. It also illustrates how common transactions affect the Balance Sheet with the help of accounting examples. It also teaches you how to prepare a Balance Sheet and how the Balance Sheet interacts with other financial statements.Learning Objectives
- Recognize examples of the components of a Balance Sheet
- Prepare a Balance Sheet
- Determine how common transactions affect the Balance Sheet
- Recognize how the Balance Sheet connects and interacts with the other financial statements