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A 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. 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.

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."

Because of the asset and liabilities are presented in the company balance sheet, it can help the manager to make decision whether the company should make further investment or not. As we know, this financial statement details your assets, liabilities and equity, as of a particular date. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter, or year. So, by having a good management of balance sheet, can easy to make the decision whether they should to invest more for the company by looking on the previous investment made by the company.

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14y ago
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14y ago

Assets are anything of material value or usefulness that is owned by a person or company. An asset can be a car, a building, or a computer.

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13y ago

on the debit side fixed assets,current assets,

on the credit side capital,long term liabilities and short term liabilities

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10y ago

Assets are those items which a business use to earn revenue to pay all liabilities and owner's capital of business.

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9y ago

Following items comes in balance sheet:
1 - current assets
2 - non-current assets
3 - current liabilities
4 - non-current liabilities
5 - Owner equity.

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10y ago

Intangible assets are shown in asset side of balance sheet as these are also assets of business like other all tangible assets.

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10y ago

1 - Cash

2 - Bank

3 - Debtors

4 - Inventory

5 - Bill receivable

6 - Prepaid assets

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15y ago

all assets go on the balance sheet.

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12y ago

Fixed assets

current assets

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Q: What assets are on the balance sheet?
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