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Excel Tutorial: How to Create an Income Statement
The balance sheet describes the assets, liabilities, and equity of a firm at a specific point in time. Assets are the (tangible or intangible) things that a firm owns. Liabilities are the firm’s debts. Equity is the difference between what the firm owns and what it owes to others. Because the balance sheet is specific to a point in time, it is much like a photograph. What it shows was true when the snapshot was taken, but is not necessarily true when it is viewed.