Post by Henry Yook on Oct 13, 2013 14:33:50 GMT -5
Left side = Assets
Right side = Liabilities and Owner's Equity
Assets = What I have
Liabilities = What I owe
Equity = My money, Our money (Shareholder's investments), and Net Income (Earnings)
Assets = Liabilities + Equity
In other words.
My Money (Equity) = What I have (Assets) - What I owe (Liabilities)
For more details:
accounting.yook.com/balance-sheet
Right side = Liabilities and Owner's Equity
Assets = What I have
Liabilities = What I owe
Equity = My money, Our money (Shareholder's investments), and Net Income (Earnings)
Assets = Liabilities + Equity
In other words.
My Money (Equity) = What I have (Assets) - What I owe (Liabilities)
For more details:
accounting.yook.com/balance-sheet