Balance Sheet

Definition of Shareholders Equity

Shareholders equity represents the net worth of a company after deducting all liabilities.  Shareholders equity, or owners equity, can be derived by using values from the balance sheet. 

What is Treasury Stock?

What are Retained Earnings?

When a company turns a net profit, they can elect to either pay it out as a dividend or take these earnings and reinvest them back into the company.  In the case of the latter, the company will record these earnings as retained earnings which will be recorded on the <

What is Working Capital?

The speaker covers the basic proponents of the balance sheet and provides examples of each.  Assets - Liabilities = Shareholders Equity.

The speaker provides a basic explanation of the balance sheet.  He mentions that it shows the assets on the left side, while the right side shows where that money came from.  That can be in the form of short term debt, long term debt, or shareholders equity. 

The speaker continues the discussion on the balance sheet and talks through the effects of an increase of assets on shareholders equity.

The speaker illustrates the components of balance sheet by using a home purchase as an example.  He covers all three parts of the balance sheet; assets, liabilities, and shareholders equity.

What are Current Liabilities?