The Art of Balance
Do you do accounting? If you do, you must be very familiar with those financial statements such as balance sheet, income statement, and cash-flow statement. A balance sheet is a snapshot of a business’s financial condition at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises assets, liabilities, and owners’ or stockholders’ equity. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners’ equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business.
The balance sheet is considered the heart of the accounting system. The accounting equation represents the relationships on the Statement of Financial Condition in terms of a mathematical statement. Assets = Liabilities + Owners’ Equity. So balance is the essence of accounting, and accounting is definitly not a rocket science
Make it balanced, whether in business or in life