20 years: Chartered accountant & educator
In this video, Saket breaks down the different categories of the balance sheet including assets, liabilities and equity. He also outlines two different ways of presenting the balance sheet, the 'current and non-current' presentation, and the 'liquidity' presentation, and when it is appropriate to use each of them.
In this video, Saket breaks down the different categories of the balance sheet including assets, liabilities and equity. He also outlines two different ways of presenting the balance sheet, the 'current and non-current' presentation, and the 'liquidity' presentation, and when it is appropriate to use each of them.
8 mins 50 secs
A balance sheet or statement of financial position provides a snapshot of the sources of funds and investments of an entity, as at a particular date. The elements of a balance sheet are assets, liabilities and equity and these elements form the fundamental accounting equation: Assets = Liabilities + Equity. The assets and liabilities may be presented on the balance sheet in current/non-current format or in the order of liquidity.
Key learning objectives:
Outline the different categories of items on the balance sheet
Explain the current and non-current classification of assets and liabilities on the balance sheet
Identify the assets and liabilities presented in the order of liquidity
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