Unlocking the Secrets of Balance Sheets: Understanding the Wealth of Organizations
The balance sheet is a financial statement that shows what an organization owns and how it was paid for. It is divided into two parts: assets at the top and sources of finance at the bottom. The total value of assets must equal the total amount of finance used to buy them, making the balance sheet balance. The order of items on the balance sheet doesn't change the information it provides. The bottom part of the balance sheet shows the total capital invested in the business.