A basic tenet of double-entry book-keeping is that total assets (what a business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.

Although sometimes overshadowed by the all-important income statement, the balance sheet can offer essential insights into a ...

According to the IRS, insolvency occurs when your total liabilities exceed your total assets. Insolvency is divided into two categories: cash flow and balance sheet. You can claim balance-sheet ...

The acid-test ratio, also known as the quick ratio, measures the liquidity of a company. Learn how to calculate acid-test ratio here.

No, common stock is neither an asset nor a liability; common stock is an equity ... The inflow of cash increases the cash line in the company balance sheet. In other words, the company's assets ...

What is a Balance Sheet? Recall that a balance sheet is a financial snapshot which shows the current health of the business as measured in terms of its assets and liabilities. Assets include items ...