balance sheet example

Business and Personal Finance: Liabilities Are What Your Company Owes

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The Accounting Equation – Liabilities Are What Your Company Owes Most businesses owe something to someone. Whether you take out a bank loan to start the company, use a company credit card to pay for expenses, or buy your inventory from vendors on account, your company will show liabilities on the balance sheet. Even if … Read more

Business and Personal Finance: Breaking Out Asset Categories

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The Accounting Equation – Breaking Out Asset Categories The accounting way to separate assets into categories uses liquidity as the measure. Anything that is expected to be converted to cash within one year of your balance sheet date is considered a current asset; all others are plunked down into one of the long-term categories. Long-term … Read more