Balance sheet Hattingen is a fundamental financial document for businesses that shows the so-called book value of a company at a specific point in time. The document displays all accounts that are itemized and categorized into assets, liabilities and shareholders’ equity. It follows an equation that equates a firm’s resources (assets) with its sources of capital (liabilities and shareholders’ equity).

The left side of the balance sheet records all the things your practice owns that have some quantifiable value and could be turned into cash, such as equipment, inventories and property. It also lists short-term investments, like prepaid insurance and accounts receivable. The right side of the balance sheet lists all the money your practice owes to others, including debt, taxes and wages. It then totals up current liabilities, which are those due within one year, and long-term obligations, which are those that won’t become due for more than a year.

The bottom of the balance sheet displays shareholder’s equity, which is what remains after subtracting all the liabilities from the assets. This includes the initial investment in the business, plus all net earnings that were reinvest into the company (after paying out dividends) and any retained earnings. This figure may be adjusted to reflect any changes in accounting policies or procedures that might have affected the values recorded in various accounts. The balance sheet is a critical tool for business owners, investors and regulators. It can help them gauge a company’s financial health and determine its creditworthiness. Bilanz Hattingen