financial planner

I hope I given you a broad feel for accounting now the boring part let’s get down to basics investors creditors and government agencies are interested in the financial health of corporations this brings us to the question how do we find out the financial position of a company let’s go to the big the financial position of a business enterprise is defined by the relationship of assets and liabilities to equity any event that affects assets liabilities our company’s equity is referred to as a transaction as you can see the famous accounting equation is assets equals liabilities plus equity.

You may be wondering what are these assets what are liabilities what is equity let me give you some basic definitions which you need to know before we proceed let’s start with assets what our asset assets are anything of monetary value to a business businesses acquire assets to make products that they can sell and make money so the formal definition of assets is anything that can provide now key words future economic benefits to a corporation let me repeat that anything that can provide here come the key words future economic benefits to a corporation.

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