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Financial statements
The balance sheet
A snapshot at one moment of what the business owns (assets), owes (liabilities), and what is left for the owners (equity). Assets always equal liabilities plus equity.
Owned by: Entry analystTest band: Entry analyst
The formula
Assets = Liabilities + Equity
In practice
It is a point in time, not a period. Compare two of them to see where cash went — the change in every line is a cash flow.
The kind of thing the test asks
- The balance sheet is a picture of the business…
More in financial statements
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