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?
I just passed the Series 66 exam and found that the Solomon Exam Prep materials are the way to go when preparing for this exam. The advice given from the get-go is spot on; if you think you can cram for this course, forget it. Use the materials as advised and you'll do well. The format of the practice exams closely simulate the way the questions are presented on the test itself. I had 2 prep materials, Solomon's and another and I honestly believe Solomon's was the one that helped the most.
Julio Revuelta, Wealth Management Firm, Miami, FL
I passed the Series 66 exam with an 83 this morning! I wanted to personally thank you for all the help you have given me. Your method of presenting the information needed to pass these exams is outstanding (I only had two weeks to study). In the future I wouldn't even consider using another resource to tackle the preparation for a Series exam. Moving forward in my career I will be sure to pass this information on to friends and colleagues without hesitation.
Michael F. Lee, Jr. Hatteras Funds, Raleigh, NC
Jeremy and team, thank you for your excellent study materials and your availability to provide guidance and feedback as I was able to pass my Series 66 on the first try...
The most telling confirmation your training materials are top notch...
when I sat for my exam, once the test started and I read the first question, I instantly knew from my studies using the Solomon training, I was going to handle the test. Being able to sense this from the first question was more than comforting.
Thank you again!
Pablo Serna, Silicon Valley Bank, Menlo Park, CA
I sat for the Series 66 on March 16th. I got an 85. I give all kudos to Solomon. The study materials were excellent.
William Crull,
Metairie, LA
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
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
Read more reviews
