Balance Sheets 101: What Goes on a Balance Sheet?

Why You Can Trust Finance Strategists

Step 5: Add Total Liabilities to Total Shareholders’ Equity and Compare to Assets

Balance Sheets May Be Susceptible to Errors and Fraud

1. Some liabilities are considered off the balance sheet, meaning they do not appear on the balance sheet.
2. In these instances, the investor will have to make allowances and/or defer to the experts.
3. Enter projected figures to see your financial position compared to your financial goals.
4. Noncurrent assets are long-term investments that the company does not expect to convert into cash within a year or have a lifespan of more than one year.
5. The balance sheet is essentially a picture a company’s recourses, debts, and ownership on a given day.