Updating ares


22-Nov-2016 04:26

For example, a manufacturing firm will carry a large amount of raw materials, while a retail firm carries none.The make-up of a retailer's inventory typically consists of goods purchased from manufacturers and wholesalers.It is also clear that this balance sheet is in balance where the value of the assets equals the combined value of the liabilities and shareholders' equity.Another interesting aspect of the balance sheet is how it is organized.Assets are what a company uses to operate its business, while its liabilities and equity are two sources that support these assets.Owners' equity, referred to as shareholders' equity in a publicly traded company, is the amount of money initially invested into the company plus any retained earnings and it represents a source of funding for the business.It is important to note that a balance sheet is a snapshot of the company's financial position at a single point in time.SEE: Complete Guide To Corporate Finance, What Is A Cash Flow Statement?

Like assets, they can be both current and long-term.Cash, the most fundamental of current assets, also includes non-restricted bank accounts and checks. Accounts receivables consist of the short-term obligations owed to the company by its clients.



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