neighbourhood tax agent accountant woolloongabba

let’s start this again so a balance sheet a balance sheet lists the assets liabilities and equity of a entity a company of business a charity whatever it is an asset is something that is owned so your assets if we’re looking at your household would be like furniture they’ve purchased could be things like electrical goods a computer a TV these are assets you may have bought a car that’s my set to you things that you own and in the business sense assets are generally things that you are in to have a significant value if you have work uniforms you know polo t-shirts or something like that or maybe boiler suits these are things that a company may own but they’re not really of significant value whereas the machines that are factory may purchase the company cars the computers the office furniture these are assets they have significant value and they’re owned by an entity liabilities are the opposite they’re things that an entity owes so going back to your household you may have debt and liabilities is usually linked to debt see may owe money each month to a bank because you have a mortgage perhaps you have a credit card with a balance on these are things that you owe and then equity is to do with ownership so it’s similar to assets assets are generally tangible goods that you own whereas equities ownership in something so a lot of people refer to equity with their mortgage

they have 40% equity meaning they’ve paid 40% off their mortgage or they own 40% of their home it’s the same with a a company or a business if you’re referring to equity it’s the amount of money that an investor has put in to a business or sometimes it can refer to the percentage of that ownership of a business now closing this again and bringing up that file then I just had which is here you can see as a balance sheet here so it lists the assets at the top here and then liabilities and equity at the bottom so assets there’s a computer a set of 362 pounds or dollars the bank account is an asset the money in the bank we own and there are other things here and then we have our shareholder funds which is equity and then there are no liabilities but it could be that this entity has debt that has a business bank loan or something like that and that will be listed and that’s the basics of a balance sheet so the profit and loss shows the profitability of an entity the balance sheet lists and the assets liabilities and equity


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