A balance sheet reports a company's assets, liabilities and shareholders' equity at a specific for any given financial period, and provides a basis for computing rates of return and evaluating its capital structure. In general, it tells what a company owns and owes, as well as the amount invested by shareholders.
The Balance sheet is one of the three crucial financial statements; others are, income statement and the cash flow statements. All three of these statements are used for reporting the financial performance of a company over a specified accounting period.
A company has to pay for everything it owns by either borrowing money or taking it from the investors. And a higher level breakdown of it will be available in the balance sheet.
If a company raises money by borrowing $10,000 from a bank, its asset will increase by $10,000, and its liabilities will also increase by $10,000. If the company raises money by issuing stocks to investors, its assets will increase by that amount, as will its shareholders' equity.
Financial news about publicly listed comapnies in electronics sector.Read
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