Map of Itapejara d'Oeste on There are actually a number of different types of financial statements including, but not limited to, the balance sheet, the income statement, and the statement of cash flows. The balance sheet is a snapshot that basically summarizes asset, liabilities and net worth at some point in time. A company's total assets is the value of all it owns including cash, inventories, land, plant, and equipment. Total liabilities is the total amount the company owes others, that is, owes to creditors, including the pensions owed to retired employees.
The balance sheet should give a good financial picture indicating assets owned and liabilities owed.
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An accounting identity implies that assets must equal liabilities plus net worth. Thus, net worth provides information as to what the firm is currently worth.
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