To explain right and left side of a balance sheet etc

Question

Accepted Answer

A balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

The left side of the balance sheet shows the company's assets, which are resources that the company owns or controls.
The right side of the balance sheet shows the company's liabilities, which are obligations that the company owes to others.
The difference between the assets and liabilities is the company's equity, which represents the residual interest in the assets after deducting liabilities.
Assets are typically listed in order of liquidity, or how quickly they can be converted into cash.
Liabilities are typically listed in order of maturity, or how soon they must be paid.
Equity includes items such as common stock, retained earnings, and other comprehensive income.
The balance sheet equation is Assets = Liabilities + Equity.

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