Assets Equity
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From Wikipedia, the
free encyclopedia In financial
accounting, a balance sheet or statement of financial position is a summary
of the financial balances of a sole proprietorship, a business partnership
or a company. Assets, liabilities and ownership equity are listed as of a
specific date, such as the end of its financial year. A balance sheet is
often described as a "snapshot of a company's financial condition".[1] Of
the four basic financial statements, the balance sheet is the only statement
which applies to a single point in time |
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A standard company balance sheet has three
parts: assets, liabilities and ownership equity. The main categories of
assets are usually listed first, and typically in order of liquidity.[2]
Assets are followed by the liabilities. The difference between the assets
and the liabilities is known as equity or the net assets or the net worth or
capital of the company and according to the accounting equation, net worth
must equal assets minus liabilities.[3]
Another way to look at the same equation is that assets equals liabilities
plus owner's equity. Looking at the equation in this way shows how assets
were financed: either by borrowing money (liability) or by using the owner's
money (owner's equity). Balance sheets are usually presented with assets in
one section and liabilities and net worth in the other section with the two
sections "balancing."
Records of the values of each account or line in the balance sheet are
usually maintained using a system of accounting known as the double-entry
bookkeeping system.
A business operating entirely in cash can measure its profits by withdrawing
the entire bank balance at the end of the period, plus any cash in hand.
However, many businesses are not paid immediately; they build up inventories
of goods and they acquire buildings and equipment. In other words:
businesses have assets and so they can not, even if they want to,
immediately turn these into cash at the end of each period. Often, these
businesses owe money to suppliers and to tax authorities, and the
proprietors do not withdraw all their original capital and profits at the
end of each period. In other words businesses also have liabilities.
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More related links about
Assets Equity
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asset/equity
ratio - definition of
asset/equity
ratio - Total assets
divided by shareholder
equity. Asset/equity
ratio is often used as a measure of ...
www.investorwords.com/283/asset_equity_ratio.html
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Brief and Straightforward Guide: What is
the Asset/Equity
Ratio?
www.wisegeek.com/what-is-the-assetequity-ratio.htm
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Information and links related to
Asset/equity
Ratio.
www.investorglossary.com/asset-equity-ratio.htm
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7 Sep 2004 ...
Assets always
equal your liabilities plus
equity. If
assets are less
than liabilities then your
equity is
negative. ...
www.lemoineandjames.com/gaap/22ale.html
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Assets to
Equity ratio is
simply total assets
divided by total
equity. The formula is the following: = TOTAL
ASSETS / ord
cap,reserves + prefs,minorities ...
www.advfn.com/Help/assets-equity-215.html
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6 Jan 2010 ... The following are
some of Vancouver-based Ivanhoe's key
assets and
equity
investments, based on information from the company's website
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