# Balance Sheet - A statement of what you own, what you owe. - Fundamental Accounting Equation: Assets = Liabilities + Owners Equity - What a company owns vs how it paid for its assets - Always a point in time - Usually for entire company ## Asset - Current Assets - Can be turned into cash in less than one year - Cash and Cash Equivalents - Accounts Receivable - Inventory - Long-term Assets - Useful life more than one year - PPE - Property, Plant and Equipment - Sum of ALL capital expenditures - *Minus* all accumulated depreciation - From the first day of the business - Goodwill - Created by acquiring another company - Difference between price paid and net assets of acquired company - Not amortized (Goodwill Impairment Evaluation - Intellectual Property, Patents, and Other Intangibles - Accruals and Prepaid Assets ## Liabilities - Current liabilities - must be paid within one year - Short-term loans, typically secured by current asset - Current portion of long-term debt - Accounts Payable (AP) - Accrued Expenses (Liabilities) - expenses incurred but not yet paid - Deferred Revenue - Long-Term Liabilities - Loans - Bonds - Deferred Compensation - Deferred Taxes ## Owner's Equity - Stock (for contributed cash) - Common stock - generally has voting rights, dividend at company discretion - Preferred stock - first rights to dividend, no voting rights - Retained Earnings - Net Income/Losses - Dividends, for the lifetime of the business - Owners keep this - they own the company