Asked by Margaret Everett on Jun 04, 2024
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Sandy's balance sheet shows assets of $120,000,liabilities of $100,000,and shareholders' equity of $25,000.Her balance sheet is in balance.
Shareholders' Equity
The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.
Balance Sheet
A financial statement that presents the assets, liabilities, and equity of a company at a specific point in time, giving a snapshot of its financial condition.
Liabilities
Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.
- Understand the basic components and calculations involved in a balance sheet.
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Learning Objectives
- Understand the basic components and calculations involved in a balance sheet.
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