Financial statements are documents used to communicate to end-users a business's financial circumstances in an efficient and effective manner. Four basic financial statements exist: the balance sheet, ...

Stakeholders in a business need a way to conveniently assess the financial position of the firm. The balance sheet is a document designed to do just that. It provides a concise summary of everything a ...

Now let's take a closer look to see how strong this balance sheet is by analyzing it with some common balance sheet ratios. There are about a half-dozen different ratios we can use to determine a ...

Create this important document to show investors the true net worth of your business, and to keep track of your financial trajectory. If the income sheet shows what you’re earning, the balance sheet ...

Previously, we discussed some ways to improve cash flow within a company. This evolved from a question that was posed by contractors on a message board regarding the difference between profits and ...

Some business owners are tempted to leave their balance sheets to their accountants, but it is important for leadership to understand how to read their balance sheets in order to keep an eye on their ...

If you’ve ever looked at a balance sheet and immediately wanted to slam your laptop shut, you’re not alone. Most business owners don’t come from accounting backgrounds, and the sheer volume of numbers ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms. Other current liabilities are short-term debts not ...

Learn how companies legally keep assets and liabilities off their balance sheets to maintain favorable debt ratios, and the implications for investors.

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

A balance sheet is a type of financial statement that lists a company's assets, liabilities, and shareholders' equity. The assets should be in "balance" and equal the total liabilities and ...