What are the components of a balance sheet?

Answer 1

The balance sheet shows

1. the assets of the company,
2. the liabilities of the company to others, and
3. the accumulated investment of the shareholders, also known as the owners' equity. (This is shares issued + accumulated profits).

The assets include cash, stock/inventory, amounts receivable from customers, and fixed assets such as buildings and equipment.

The liabilities include debts (e.g. bank loans), deposits/prepayments received from customers, amounts payable to suppliers, taxes due, wages due to employees.

Owners' equity includes investment by shareholders, additional capital supplied by shareholders, retained profits.