Other current assets
Property, plant, and equipment, net Goodwill
Other intangible assets Long-term investments
Other noncurrent assets Total Assets
LIABILITIES
$ 5,943 Accounts payable 426 Short-term debt
6,323 Other current liabilities 3,372 Long-term debt
1,505 Other noncurrent liabilities 19,058
14,661 STOCKHOLDERS' EQUITY 13,808 Contributed capital 1,368 Retained earnings
$68,153
1,689 Treasury stock and other equity Total L & SE
4,449 37,090
(20,375) $68,153
The balance sheet reports assets and the amount of financing from liabilities and stockholders’ equity as of a certain date. This relationship is summarized by the accounting equation which is:
Assets = Liabilities + Stockholders’ Equity
Assets are items of value that a corporation owns or has a right to use. Typical asset accounts include cash, accounts receivable, inventory, equipment, buildings, and land. Accounts receivable are amounts to be received in the future from customers.
Liabilities are amounts owed to creditors; the amount of debt owed to third parties. Typical liability accounts include accounts payable, wages payable, notes payable, and bonds payable. The key word found in many liability accounts is payable. Accounts payable are amounts to be paid in the future to suppliers.
Stockholders’ Equity is the portion of assets the owners own free and clear. Stockholders’ equity may also be referred to as shareholders’ equity or owners’ equity. Typical stockholders’ equity accounts include:
Contributed Capital—Amounts paid-in (contributed) by stockholders to purchase common stock and preferred stock.
Retained Earnings—Net income earn