What is the purpose of a balance sheet?

To provide a snapshot of a business's assets, liabilities, and equity at a specific point in time.

Define 'assets' in the context of a balance sheet.

Assets are the items or resources a business owns.

Liabilities are what a business owes to third parties.

Equity represents what the business owes back to its owners.

Grade Adult · Career & Technical Education · 50 min

I can define basic accounting terms like assets, liabilities, and equity.

Accounting Stuff · 6:59

The BALANCE SHEET for BEGINNERS (Full Example)

3 key concepts

1
A balance sheet is a financial report that gives a snapshot of a business's assets, liabilities, and equity at a single point in time.
2
The accounting equation states that assets are equal to liabilities plus equity.
3
A detailed balance sheet divides assets and liabilities into current and non-current categories.

12 questions · Multiple choice & Short answer

Quick comprehension check

“Define the following accounting terms in your own words: Assets, Liabilities, and Equity.”

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