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Welcome back to accounting stuff Im James andtoday ill show you how to make a Balance Sheet the balance sheet is one of the three mainfinancial statements the other two called the income statement which we did in the lastvideo and the cash flow statement which well cover next time a balance sheet or a statementof financial position is a financial report that gives us a snapshot of a businesss assets, liabilities and equity at a single point in time now if youve watched my videos before then youve probably heard this one the stuff that a business owns is equal to the stuff that a business owes in other words a business owns assets and it owes liabilitiesto third parties the difference between the two is called equity which is what the business owes back to its owners and so we have the accounting equation assets are equal to liabilities plusequity when we take a snapshot of this accounting equation at a single point in time were lookingat a balance sheet well call
