ABSTRACT
A balance sheet is important because it reflects the company's present financial state. It is a snapshot showing the company's assets (everything the company owns), liabilities (debts), and stockholder's equity (value remaining after liabilities are subtracted from the assets). This can be expressed as the equation: https://www.w3.org/1998/Math/MathML"> Assets = Liabilities + Stockholder's equity https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780080510781/349fd38e-1125-4f2f-aeb7-f46e94419f14/content/eq14_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
