define balance sheet assets liabilities equity

define balance sheet

assets

liabilities

equity

Expert Solution

Balance sheet

Balance sheet also known as the statement of financial position that reports the firms financial position at a specified point in time. The balance sheet consists of assets, liabilities and equity.

Assets

Assets are resources that are controlled which results from prior transacrtions that are expected to generate economic benefits in the future.
Assets are classified as current assets and non current assets.

Liabilities

Liabilities are accumulated financial obligations that results from past events that are expected to require an economic outflow of resources,

Equity

The equity is equal to assets minus liabilities. Equity also known as stockhloders equity or owners equity.

Assets = Liabilities + Equity

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1. The balance sheet consists of assets and liabilities and equity. With a focus on liabilities,...

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