A balance sheet is a record of your assets and liabilities and the value of your shareholders' stock. Shareholders are people who invest in your business. Your total assets must equal the sum of your ...

When you want to know a company’s financial health, it helps to look at its balance sheet. But if you’ve never seen a balance sheet before or don’t know how to read one, all you’ll see is a collection ...

There are several ways a business can depreciate an asset—namely through straight line or accelerated modes. For an accelerated depreciation schedule, sum-of-years digits is typically the most common.

Balance-sheet balances carry over from one period to the next. So the ending cash balance from last year will become the beginning cash balance this year. Throughout the year, transactions will ...

Joseph Nguyen is a contributing author at Investopedia and a research analyst with experience at a securities brokerage firm. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry. With over a decade of editorial experience, Rob Watts ...

A strong balance sheet can make all the difference between your investment surviving a market downturn and blowing up in your face. Nearly every financial crisis can be traced back to a foundation of ...