Components that make up a balance sheet

Topic B: Balance Sheet
In this week’s material, we learned about balance sheets. In this discussion, we will examine the balance sheet and its relevance in the funeral home.

Topic B: Initial Post
Describe the three (3) components that make up a balance sheet. Post an answer to this question using information from the text, your experiences, or from another quality source. Make sure to use APA formatting to cite your sources. Your written post should be at least 200 words in length or you may make a video response.

Expert Solution 

The three main components of a balance sheet are assets, debt, and owners’ equity.

Assets: This refers to what the firm owns that has a monetary value. Assets can be further grouped into three

  • Current assets

  • Fixed assets

  • Other assets

Debt: Debt refers to the financing provided by creditors. Debts are considered as current assets and they include Accounts payable (trade credit), Accrued Expenses, and Short-term notes

Owners’ equity: Owners’ equity refers to the money that the business owner invests in addition to the net profits that he has retained over a given business period…Read more

References

Longnecker, J. G., Petty, W. J., Palich, L. E., & Hoy, F. (2019). Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition. Cengage Learning.

Aničić, J., Simić, N., Petrović, V., & Aničić, D. (2017). Financial aspects of current assets management in Serbian economy. Journal of Process Management. New Technologies5(2), 36-44.

Ponomareva, S. V., & Zheleznova, I. V. (2018). Intrafirm planning and mathematical modeling of owner’s equity in industrial enterprises. In International Conference Information Technologies in Business and Industry.

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Components that make up a balance sheet