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Day 19

Balance Sheet Overview

Watch the video and scroll down for your homework.

Your Homework

  1. What is the ONE WORD that defines the Left Hand Side of the Balance Sheet?

  2. What is the ONE WORD that defines the Right Hand Side of the Balance Sheet?

  3. What are the TWO MAIN components of CAPITAL (i.e. on the Right Hand Side of the Balance Sheet)?

  4. What is the Balance Sheet Equation?

  5. What image can help you remember the Left Hand Side of the Balance Sheet or ASSETS?

  6. What image can help you remember the Right Hand Side of the Balance Sheet (i.e. Total Liabilities plus Shareholders Equity)?

Scroll down to see answers.

Answers

  1. ASSETS

  2. CAPITAL

  3. Liabilities and Shareholders Equity

  4. Total Assets = Total Liabilities + Total Shareholders Equity

  5. A FACTORY - all the things (aka assets) inside a factory that a company has to buy and own in order to be in business

  6. A GAS TANK - it's the fuel that powers the factory. It represents where the money is coming from to fund what is inside the FACTORY and to make it operate. This is either money that has to be paid back (aka Liabilities) or money investors put in (aka shareholders equity) in exchange for ownership.

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