balance sheet

I am sorry that I did not come today, because I feel really bad. However, I was read balance sheet at home and tried to understand it more clearly.

What is balance sheet actually is?
a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.

Balance sheet basis on balances
Assets= liability + shareholders equity
Owned=owed + investment

Assets
Current assets:
Assets that have life span of less than one year. Current assets include cash which you may have in hard cash(currency and coins), current, savings, and investment accounts, and other assets which are not cash is liquidity. Liquidity means how easily you can turns into cash. The second one is accounts receivable, it is how quickly will you customer pay you? How much is it really worth. The third part is stock(inventory), when we talk about stock, we need consider how quickly can you sell it? And again how much is it really worth. The forth assets is pre-paid expenses. For instance paid in advance for future benefits. E.g rent.

Non-current assets
Assets that have life span of more than one year and can be turned into cash in less than one year.
Non-current assets include fixed assets, such as machinery, computers buildings, land and tangible assets. (fixed assets value=original value-accumulated depreciation)

Other assets
There are good examples about other assets patent, copyright and goodwill and actually goodwill might the brand value, all of them are intangible assets.

Then let’s talk about liabilities
What are liabilities? Liability is an obligation of an entity arising from past transactions or events.

Current liabilities
Debts or obligation that are due within one year.
1. Bank overdraft/short term loan \
2. Accounts payable (creditors)
3. Accrued expenses. E.G payroll, interest( interest pay the loan), tax.
4. Taxes

Long term liabilities
Debts or obligations that due in more than one year e.g. Bank loans, leases.
1. Bank Loan

Equity (capital)& Retained Earnings

Equity- Investment from shareholders(paid in capital goes to current assets)
Retained earnings- Profit