Balance Sheet Simplified and Defined

The Balance Sheet Simplified

The balance sheet is a statement of financial condition on what a firm’s assets, liabilities, and stockholder’s equity are at a point in time with the essence of the total of all “assets must equal the sum of liabilities and stockholders’ equity.” (Fraser and Ormiston 37).  The balance sheet is understood easier when you break it down into its two main sections and subsections.

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