THE BALANCE SHEET 1 by Yina Franco

The balance sheet is a basic financial statement reporting on a particular date the financial situation of your company and consists of three basic elements: 

• ASSETS: The asset is everything that the company has cash, inventory, banking, accounts receivable.
• lIABILITIES: Liabilities much money should you report such bank overdrafts, accounts for payment, advances, debts in general.
• CAPITAL: The capital is the value that belongs to the employer, the result of its activity after a specified period.

Shareholders equity known as Assets = Liabilities + Equity (A = P + Pt) is the result of the adoption of an accounting record method based on double entry  in order to get the value of Capital.