Episode 92: Introduction to Financial Statements: The Balance Sheet, Part 2
To view additional video lectures as well as other materials access the following links:
YouTube Channel: http://bit.ly/1kkvZoO
Website: http://bit.ly/1ccT2QA
Facebook: http://on.fb.me/1cpuBhW
Twitter: http://bit.ly/1bY2WFA
Google+: http://bit.ly/1kX7s6P
SoundCloud: http://bit.ly/1hNcJ2k
The balance sheet is a financial statement generated using financial accounting to address the needs of external stakeholders. External stakeholders include anyone with an interest in the company's performance, however they don't work for the company. They commonly include: investors, suppliers, creditors, and government agencies. As external stakeholders, we use financial statements, like the balance sheet, to assist us in making an informed decision related to whether or not to invest, or whether or not to extend credit (i.e. loans and accounts payable).
The balance sheet is used to summarize a company's financial position at a specific point in time. Its structure is based upon the accounting equation, which is assets = liabilities + owner's equity. The video is the second in a two-part series on the balance sheet. We pick up with liabilities and end the video with a discussion of stockholder's equity.
