The Balance Sheet Explained - The Basics

We cover the basic layout of the balance sheet. This is one of the big three reports from the accounting system. Something else to know: the balance on a given report is the summation of all transactions up to that point. For instance, if you see the amount $70,000 in Equity Capital on the report two years in a row, that means that probably nothing changed from one year to the next. It is the same value. You do not add them together.

Chapters:
0:00 Start
1:05 Assets
5:15 Liabilities
8:02 Equity
9:04 Accounting Equation
9:46 Wrap Up

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