What are the components of a balance sheet?

A balance sheet is a financial statement that lists out a company's assets, liabilities, and equity at a given point in time. The components of a balance sheet include Assets, which are all the resources owned by a company that can generate future economic benefits; Liabilities, which are the company's obligations to pay debts and other financial commitments; and Equity, which represents the residual interest after liabilities are deducted from assets. Assets can be further divided into current assets and fixed assets, while Liabilities can be current liabilities and long-term liabilities. Equity includes common stock, retained earnings, and other comprehensive income. A balance sheet provides a snapshot of a company's financial position and helps investors, creditors, and other stakeholders understand the company's financial health.

This mind map was published on 16 May 2023 and has been viewed 122 times.