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Shares Made Simple: A beginner's guide to the stock market by Rodney Hobson

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Chapter 12: Balance Sheet

The balance sheet is an assessment of the assets and liabilities of the company at the moment the financial year ends.

  • Assets are the things of value that the company owns including cash, property and machinery, while
  • liabilities are what the company owes, such as bills from suppliers and bank loans.

Also note that, as elsewhere, assets are shown as positive figures on the balance sheet while liabilities are shown in brackets.

The balance sheet will show the figures for the latest year end in one column and those for the previous year end in a separate column so you can see what changes in assets and liabilities have been incurred over the financial year.

As with the profit and loss account, items on the ...

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