BALANCE SHEET- Explained In (Almost) 2 Minutes!

Learn how to read a Balance Sheet and understand Assets, Liabilities and Equity. In this beginner-friendly Balance Sheet tutorial, we'll break down the Accounting Equation, work through a complete example and learn how to assess a business's financial position.

A Balance Sheet, also called a Statement of Financial Position, shows what a business owns, what it owes and what's left for its owners at a specific point in time.

Using a boutique clothing retailer as our example, we'll cover:

▪ Assets, Liabilities and Equity explained
▪ The Accounting Equation: Assets = Liabilities + Equity
▪ Current vs Non-Current Assets and Liabilities
▪ Share Capital and Retained Earnings
▪ Why the Balance Sheet always balances
▪ How the Balance Sheet connects to the Income Statement
▪ How to calculate the Current Ratio and Debt-to-Equity Ratio

#accounting #accountingbasics #accountingstuff