Join Rudolph Rosenberg for an in-depth discussion in this video The liabilities and equity section, part of Financial Literacy: Reading Financial Reports.
- [Voiceover] The Liabilities and Equity section…covers everything that the company owes,…to banks for example, or suppliers, employees, and so on.…In other terms, this is all the debts that the company has.…Equity is the debt that the company has to its shareholders.…It is very unique type of debt…and therefore has its own section in the Balance Sheet.…The equity section contains two categories:…retained earnings and capital stock.…The liabilities section covers all the other debts…that the company has, such as accounts payable,…accrued expenses, current portion of debt,…income taxes payable, and long-term debt.…
As for the asset section it is separated…into current liabilities and long-term liabilities.…Everything that is affecting the company…within the year following the day…on which the Balance Sheet has been prepared…is reported in the current liabilities section.…The rest is considered long-term.…
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- What is a financial statement?
- Reading the balance sheet
- Understanding depreciation, liabilities, and equity
- Reading the income statement
- Understanding revenue, costs, profitability, and net income
- How cash flow works
- Analyzing financial documents with context<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
Skill Level Appropriate for all
1. Financial Statements
2. The Balance Sheet
3. The Income Statement
4. The Cash Flow Statement
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