Examining the Balance Sheet - Foundations

An Accounting and Finance Course

*This course can be tailored or customized to your specific needs.

Course Overview

To understand a balance sheet, professionals must grasp its vital components. This introductory class examines assets, liabilities, and owner’s equity.

Objectives

  1. Identify the components of a balance sheet
  2. Define assets and liabilities
  3. Understand how to calculate owner’s equity

Lesson 1: Assets

  • Current – short-term
    • Expected to be consumed or converted into cash with 12 months
  • Non-Current – long-term
    • Not expected to be consumed or converted into cash within 12 months

Lesson 2: Liabilities

  • Current – short-term
    • Expected to be paid within the next 12 months
  • Non-Current – long-term
    • Not expected to be paid within the next 12 months

Lesson 3: Owner’s Equity

  • Assets – Liabilities
  • Capital Investments
  • Retained Earnings