1.1.2. The Balance SheetThe balance sheet is a document that summarizes a company’s assets, liabilities, and shareholders’ equity. On the balance sheet, assets are what the company owns, liabilities are what the company owes, and shareholders’ equity is what’s left over, the company’s net worth. The balance sheet is different from the income statement in that it shows financial information at a particular point in time rather than over a period of time.
The balance sheet is represented by the following equation:
assets = liabilities + shareholders’ equity
This equation demonstrates that at all times a company’s assets must be equivalent in value to the combined value of the company’s liabilities and shareholders’ equity.
Note: the terms liabilities and debt may be used interchangeably on the exam.
Balance Statement for Northwest Coffees, Inc. (in millions)
Assets
Cash and Cash Equivalents
7.0
Accounts Receivable
10.0
Inventory
3.7
Property, Plant and Equipment
15.1
Goodwill
1.2
Patents
3.2
Total Assets
40.2
Liabilities
Accounts Payable
5.0
Other Current Liabilities
2.5
Long-term Debt
12.4
VIDEO
Since you're reading about Series 66: 1.1.2. The Balance Sheet , you might also be interested in:
Please Enable Javascript
TESTIMONIALS
What are people saying?
Karen and Team Solomon, thank you so much for all your support.
Your Series 7 program was easy to understand. The "Ask the Professor"
was invaluable for the Series 66. You are the program of choice for our office.
Kirk, PA
Very excited to pass the Series 66! The Solomon practice exams were very helpful to understand the concepts and fundamentals of the questions. I would highly recommend Solomon Exam Prep for all FINRA exams. Make sure to have a good grasp on agent registration and suitability when taking the 66. Thank you Solomon!
Blake Rossman, TrueWealth. Bellevue, WA
The Series 66 Exam Prep offered by Solomon Exam Prep
is exceptional. I used both the textbook and the exam simulator as
my only study materials for the exam and passed with an 88. The Solomon material is written in a way which is easy to understand and digest. The exam simulator
was excellent in preparing me with quizzes and full length practice tests to
focus on my points on weakness and prepare me for the real thing! I would
highly recommend both of these products to anyone!
Luke Bowes,
Seymour, TN
I passed the Series 79, 7, and 66 thanks to your study guides. I scored an 85, 81 and 82, respectively. The exam simulator was highly useful and great preparation. I glossed over material I knew and really prepped topics related to laws and ethics, which these study guides effectively described and tested. I highly recommend Solomon!
Sean M, New York, NY
Thank you so much and special thanks to the
product you put out!! I did not know about Solomon a year ago when I took the
Series 7 and I used another company's material. I did not pass the 7 first time
and I was extremely nervous about the 66. However your product was
wonderful and thanks to you guys I passed the 66 on my first try!!! Can't thank you
enough!!!
Maria Raspa,
Merrill Lynch,
Wellesley Hills, MA
Jeremy, I just wanted to take a moment to say thank you so much for your wonderful product! Your study guides helped me pass the 7, 66, 24, 52, and 53 all within 2 and a half months. Thank you again!
Christopher Kriak,
Compliance Analyst,
PNC Investments,
Pittsburgh, PA
Read more reviews
