The Balance Sheet shows the financial performance of the company since inception, unlike an Income Statement which starts over every year. It has things on it the Income Statement doesn’t, like Payables and Receivables.
There are 3 parts to a Balance Sheet: Assets, Liabilities and Owners Equity.
The Assets section is made up of Current Assets and Fixed Assets.
Current Assets are things that can be converted into cash within a year and include cash, receivables, inventory and pre-paid expenses.
Fixed Assets are investments you have made in things that last a long time that you use to run your business, and are not things that you sell in the operation of your company. They include things like vehicles, tools and equipment, computers, furniture and fixtures, and leasehold improvements.
More tomorrow!
Extremely
Very nicely explained!