What is the basic balance sheet equation and why is it important?

1
Salvador Towne asked a question: What is the basic balance sheet equation and why is it important?
Asked By: Salvador Towne
Date created: Tue, Jun 8, 2021 2:13 AM
Date updated: Sun, Aug 14, 2022 7:22 AM

Content

Top best answers to the question «What is the basic balance sheet equation and why is it important»

In its most basic form, the balance sheet equation shows what a company owns, what a company owes, and what stake the owners have in the business. The equation starts off with the company assets. These are the resources that the company has to use in the future like cash, accounts receivable, and fixed assets.

Your Answer