Section 4
The Balance Sheet
Book
Version 6
By Boundless
By Boundless
Boundless Business
Business
by Boundless
4 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/2150/square/dwba-dbs.jpeg)
Defining the Balance Sheet
The balance sheet is a summary of the financial balances of a company.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2152/square/ae-d929-4e03-99a7-682f5a676288.jpg)
Assets
Assets are resources as a result of past events and from which future economic benefits are expected to flow to the enterprise.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2153/square/us-liabilities.jpeg)
Liabilities
A "liability" is an obligation of an entity, the settlement of which may result in the yielding of economic benefits in future.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2154/square/1e-4e33-4193-8275-4d6d6f63030d.jpg)
Owners' Equity
Shareholders' equity is the difference between total assets and total liabilities.