商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international economychap.9 balance sheet.pptVIP

Balance Sheet * * What is a Balance Sheet? A balance sheet is a record of the assets, liabilities, and equity of a business as of a particular date. Its purpose is to depict the value of various components of the business at a moment in time. What is assets? Assets are valuable items owned by a business, whether fully paid for or not. These include cash and its equivalents; accounts receivable, or amounts due to be paid to the company; inventories; property, plant and equivalents; and other financial assets, such as deposits or prepayments held by other business. What is liabilities? Liabilities are obligations to nonowners — individuals or organizations with no ownership interest in the company’s trade transactions—for goods or services. Typical liabilities include accounts payable, payroll, and short— and long—term debt to lenders and investors. A balance sheet subdivides assets and liabilities into current and noncurrent categories. Current assets are cash and other assets that can be converted to cash or used within one year of the balance sheet date. Current liabilities are those that are due and payable within one year. If current liabilities exceed current assets, the business may have difficulty meeting its payment obligations within the year.