Types of balance sheet accounts – assets

In a previous post we had a look at the concept of a financial statement called a balance sheet. In this post we’ll examine the types of accounts that we’ll use on the balance sheets. First let’s recall our accounting equation. Assets = Liabilities + Owner’s Equity or put another way. Owner’s Equity = Assets – Liabilities. What the balance sheet shows is how much the business owes owners or said another way how much equity the owners have in the business ...read more