流利说商务英语 Level 6 Unit 1 Part 1(二)Balance Sheet - 副本

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流利说商务英语 Level 6 Unit 1 Part 1(二)Balance Sheet

 Balance sheet

The balance sheet shows what a company owns, what it owes, and what it's worth. A balance sheet has three sections.

On the left side of a balance sheet is a company's assets.

A company's equity, also referred to as owner's equity or shareholder's equity, is listed on the right side.

A company's liabilities are listed below equity.

The company's total assets are equal to its liabilities plus equity. Therefore, the two sides of the balance sheet are equal.

 Assets

The assets side of the balance sheet lists the total value of the company's resources. Here we find such items as cash, accounts receivable, inventories, and the other resources.

The corporation reported total assets worth 70 million dollars on its balance sheet. Unsold goods and materials are accounted for as assets in the balance sheet.

If a customer hasn’t paid the money for the goods or services within an agreed time frame, it should be listed as accounts receivable.

 Liabilities

Liabilities are the obligations or financial debts a company owes.

Each form of liabilities usually has the word "payable" in its account title.

One common liability is accounts payable, which comes from buying goods or services on credit.

Another example of liability is notes payable, which commonly comes in the form of a bank loan.

Other forms of liabilities include wages payable, income taxes payable, and so on.

 Owner's equity

The part of a business that belongs to the owners is called owner's equity.

Owner's equity reflects the amount the owner has invested in a company and the amount they have retained from its profits.

Two common ways to increase owner's equity are receiving more investments or increasing profits.

What does owner's equity reflect? the profits an owner has retained from their company.

The company hired many new staff but had not yet paid their wages, which increased the company's listed liabilities.

The company has several liabilities, valued at two million dollars.

If a real estate company has $500,000 in assets and $400,000 in liabilities, its equity is$100,000.

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