When making a balance sheet, be sure to include the assets, that which the company owns; the liabilities, that which the company owes; and the equities, that which the company invested. Create a thorough and accurate balance sheet for any type of company with information from an accounting professor in this free video on business.
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Hi, my name is Shawn Jones, adjunct professor at Argosy University. Today, we're going to talk about how to make a balance sheet. In understanding how to make a balance sheet, there are three important areas of emphasis -- three important areas located on the balance sheet. First is that of the assets. Those are the things or items in which the company owns. That may include assets, accounts receivable, inventories, along with any property, plant, or equipment that the company owns. The second section is the liability section. This section includes all items which the company needs to pay out. This includes all of its bills along with any other type of debt that the company has, whether it's a loan or other type of payments that the company must make. The third section is the owner's equity section. This section includes the money that the owner of the company may have invested in the company that may include a private owner or shareholders or retained earnings, which the company has had over a certain period of time. What's most important, though, is that the assets equal the liabilities plus the owner's equity. If you've done that, then your balance sheet has been recorded accurately. For more information about this topic, please visit our website at argosy.edu. There you can find our phone number or an address to come and visit our Salt Lake City campus.