Balance sheet
Assets, liabilities, and equity at a point in time.
Balance sheet
| Concept | Explanation | |---|---| | Assets | Resources controlled by the company, including cash, receivables, inventory, property, and intangible assets. | | Liabilities | Obligations such as payables, debt, lease commitments, and deferred revenue. | | Shareholders' equity | Assets minus liabilities under accounting rules. | | Working capital | Current assets minus current liabilities. | | Goodwill | Accounting asset commonly created in acquisitions when purchase price exceeds identifiable net assets. | | Net cash or net debt | Cash and investments compared with debt. |
Book value is an accounting measure, not necessarily economic value. Internally developed brands, software, or network effects may be understated, while goodwill may later be impaired.