how to read a balance sheet
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How to read and interpret a Balance Sheet by Gustavo A Viera, CPA (786) 250-4450TRANSCRIPT
Gustavo A. Viera, CPA www.vieracpa.com
(786) 250-4450
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.
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
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
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
The Balance Sheet FormulaThe Balance Sheet Formula
Assets =
Liabilities +
Stockholders Equity
Gustavo A. Viera, CPAGustavo A. Viera, CPA