how to read a balance sheet

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Gustavo A. Viera, CPA www.vieracpa.com (786) 250-4450

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How to read and interpret a Balance Sheet by Gustavo A Viera, CPA (786) 250-4450

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Page 1: How To Read A Balance Sheet

Gustavo A. Viera, CPA www.vieracpa.com

(786) 250-4450

Page 2: How To Read A Balance Sheet

The Balance SheetThe Balance Sheet

A Balance Sheet, or statement of financial position , gives a “snapshot” of the financial position of the company at a given date. It shows the value of the assets, liabilities and stockholders’ equity on that date.

Page 3: How To Read A Balance Sheet

The Balance SheetThe Balance Sheet

Assets

Current Assets: Cash Accounts Receivable

Fixed Assets: Equipment Furniture & Fixtures Buildings Land

Other Assets: Security Deposits Loans to stockholders

Page 4: How To Read A Balance Sheet

The Balance SheetThe Balance Sheet

Liabilities

Current liabilities: Accounts payable Taxes payable

Long term liabilities: Mortgage payable Loan to bank

Assets

Current Assets: Cash Accounts Receivable

Fixed Assets: Equipment Furniture & Fixtures Buildings Land

Other Assets: Security Deposits Loans to stockholders

Page 5: How To Read A Balance Sheet

The Balance SheetThe Balance Sheet

Liabilities

Current liabilities: Accounts payable Taxes payable

Long term liabilities: Mortgage payable Loan to bank

Stockholders’ Equity Common stock Paid in Capital Retained Earnings

Assets

Current Assets: Cash Accounts Receivable

Fixed Assets: Equipment Furniture & Fixtures Buildings Land

Other Assets: Security Deposits Loans to stockholders

Page 6: How To Read A Balance Sheet

The Balance Sheet FormulaThe Balance Sheet Formula

Assets =

Liabilities +

Stockholders Equity

Page 7: How To Read A Balance Sheet

Gustavo A. Viera, CPAGustavo A. Viera, CPA