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Here’s a layman’s description of the components of a balance sheet in a list format:
1. Assets: These are things your company owns that have value, like cash, equipment, or inventory.
2. Liabilities: These are debts your company owes, such as loans or payments to suppliers.
3. Owner’s Equity: This is the value of what’s left after subtracting liabilities from assets. It represents the owner’s stake in the business.
Remember, a balance sheet is like a snapshot of your company’s financial health at a specific point in time. If you want to learn more about how balance sheets work and need bookkeeping services click the link below to schedule a convient time to talk about your specific needs.