Fixed assets liquidating current assests


The balance sheet is made up of three different sections: assets, liabilities, and stockholders equity.

CASH AND CASH EQUIVALENTS - This represents cash and short-term highly liquid investments that are readily convertible to known amounts of cash and are so close to maturity dates that they present insignificant risk on changes in value because of changes in interest rates.

Assets = Liabilities Net Worth Assets are often divided into three categories; current, intermediate and long term.

In some situations the intermediate and long-term asset categories are combined into one category called “fixed assets”.

As a source of funds, they enable the company to continue in business or expand operations.

If creditors and investors are unhappy and distrustful, the company's chances of survival are limited.

A “net worth” statement or “balance sheet” is designed to provide you with a picture of the financial soundness of your business at a specific point in time.

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