Understanding Balance Sheets

COURSE

Understanding Balance Sheets

This reading introduces the readers to balance sheets, one of the three major financial statements. We will learn about the structure and presentation of balance sheet, calculation of various elements of balance sheet, and common ratios associated with it.

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LESSONS

Elements of Balance Sheet

The **balance sheet** describes the financial situation of a business at a given time. It provides u...

Balance Sheet in Financial Analysis

The main purpose of the balance sheet statement is to report a company’s financial position on a par...

Asset Side of the Balance Sheet

The asset side of the balance sheet is presented below: ![](https://financetrain.com/wp-content/upl...

Non-current Assets - Investments and Funds

These are the assets that are not directly used in the operations of the business. This includes inv...

Intangible Assets and Goodwill

### **Intangible Assets** These include copyrights, patents, franchises, etc., that the business us...

Liabilities Side of Balance Sheet

The liability side of the balance sheet is presented below: ![](https://financetrain.com/wp-content...

Stockholders' Equity

Shareholders’ Equity is the residual interest in the assets of an entity that remains after deductin...

Statement of Changes in Shareholder’s Equity

The balance sheet provides a broad picture of the company’s financial position along with the detail...

Common Size Balance Sheet

In a common size balance sheet, each element of the balance sheet is presented as a percentage of to...