Balance sheet provides snapshot of company's financial standing at specific moment. Shows assets, liabilities and shareholder equity at a given time. Investors and loan providers require accurate current and past balance sheets
Solvency measures a company's ability to meet long-term debts and obligations. Quick assessment is through shareholders' equity, which equals assets minus liabilities. Negative shareholders' equity indicates insolvency and potential personal losses
Public schools serve 90% of American students, funded by state and federal sources. Private schools comprise 24% of all schools and 12% of full-time teachers. Average public school has 517 students, while private schools average 193
Net worth equals assets minus liabilities. Assets include investments, savings, and property value. Liabilities encompass debts like mortgages and credit cards. Net worth can be positive (assets exceed liabilities) or negative
Assets represent money in, liabilities represent money out on a balance sheet. Balance sheet shows company's financial health at a given moment. Assets equal liabilities plus shareholders' equity
Accounting equation: Assets = Liabilities + Equity. Every financial transaction affects at least two accounts