What Are the Elements of Balance Sheet?
The main elements of a balance sheet are the assets owned by the company, the liabilities owed by the company and the owner's equity the company has invested. Include all three elements in a balance sheet 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 the elements of a balance sheet. Basically, there are three elements to a balance sheets. Those elements include assets, liabilities, and owner's equity. A brief description about each of these three aspects is the assets portion of the balance sheet is everything in which the company owns. This includes cash, marketable securities, inventories, accounts receivable, property, plant, equipment. Liabilities includes everything in which the company owes. This would include any bills or accounts payable, also any short or long-term debt or any other accrued liabilities which the business incurs. The third section includes owner's equity. This includes money that the owners of the business have put into the company that which they've taken out or that which has been raised or...that which has been raised by stockholders. Also included in that section is retained earnings, or net income. All of these elements, though, must equal each other. The assets must equal the liabilities plus the owner's equity. 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.