Amortization Schedule

Understanding the Basics of a Balance Sheet A balance sheet is a financial statement that presents a company's financial position at a specific point in time. It is an important tool for investors, creditors, and management to assess the financial health of a company. The balance sheet provides information about a company's assets, liabilities, and equity. What is an Asset? An asset is something that a company owns and has value. Assets can be tangible, such as property, equipment, and inventory, or intangible, such as patents, trademarks, and goodwill. Assets are listed on the balance sheet in order of liquidity, with the most liquid assets, such as cash and cash equivalents, listed first. What is a Liability? A liability is an obligation that a company owes to others. Liabilities can be current, such as accounts payable and short-term debt, or long-term, such as bonds and mortgages. Liabilities are also listed on the balance sheet in order of maturity, with the most im