Components of the Balance Sheet

Components of the Balance Sheet

1. Components of the Balance Sheet By: George J. Kopsias

2. Components of the Balance Sheet DePaul University alumni George J. Kopsias began his career at the Chicago Mercantile Exchange, where he provided quotes and fulfilled orders. Since that time, George J. Kopsias has achieved success as an investment banker and project-based accounting consultant at various Fortune 500 companies.

3. Components of the Balance Sheet As a project based accountant, Mr. Kopsias provides general accounting services that range from journal entry preparation and payroll to reconciliations and financial statement preparation. Financial statements refer to records that summarize the financial health and business activities of a company. Common statements include the income statement, cash flow statement, and balance sheet report.

4. Components of the Balance Sheet Balance sheets report what a company owns and what it owes at a specific point in time by summarizing three elements; assets, liabilities, and equity. Assets refer to anything owned by the company that has value, such as physical property, cash, investments, and even intellectual property. Alternatively, liabilities refer to any obligations the company has. These include items such as outstanding debt, rent payments, taxes, and payroll.

5. Components of the Balance Sheet Last, equity is the amount held by owners or shareholders of the firm. Also known as capital or net worth, equity refers to the amount left over if the company were to sell all its assets and pay off all its debts.