The Balance Sheet Reports at a point in time: 1.What a business owns (assets). 2.What it owes to creditors (liabilities). 3.What is left over for the
{"Image DocumentName": "Reports at a point in time:", "Image ImageDescription": "The Balance Sheet. Reports at a point in time: What a business owns (assets). What it owes to creditors (liabilities). What is left over for the owners of the company\u2019s stock (stockholders\u2019 equity). BASIC ACCOUNTING EQUATION. Assets = Liabilities + Stockholders\u2019 Equity. Part I. The balance sheet reports a company\u2019s financial position at a point in time. You can think of the balance sheet kind of like a picture or a snapshot of what a business owns (called assets), what it owes to creditors (called liabilities), and what is leftover for the owners of the company\u2019s stock (called stockholders\u2019 equity). Assets are listed in order of liquidity, that is, how quickly they are used up or converted into cash. Notes payable are like accounts payable except that they: (1) are not interest free; (2) will not be paid as soon; and (3) are formal written debt contracts. Part II. The balance sheet balances because the resources (assets) equal the claims to the resources (liabilities and stockholders\u2019 equity)", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}