Basic Balance Sheet Terms

Assets

Everything the company owns or controls that has value.

Current Assets

Assets expected to be converted to cash within one year.

Cash and Cash Equivalents

Money immediately available (bank, cash, short-term investments).

Receivable, Net

Money owed by customers after allowances for bad debts.

Inventories

Goods available for sale or raw materials.

Prepaid Expense and Other

Payments made in advance for goods/services not yet received.

Total Current Assets

Sum of all current assets. Shows short-term financial strength.

Property and Equipment, Net

Long-term tangible assets minus accumulated depreciation.

Operating Lease Right of Use Assets

Value of assets leased under operating leases.

Finance Lease Right of Use Assets, Net

Value of leased assets under finance leases, minus amortization.

Goodwill

Premium paid for acquisitions above net asset value.

Other Long Term Assets

Miscellaneous long-term assets not listed separately.

Total Assets

Total value of everything the company owns.

Liabilities and Equity

How the company’s assets are financed (debt vs owner investment).

Current Liabilities

Obligations due within one year.

Short Term Borrowings

Loans due within a year.

Accounts Payable

Money owed to suppliers.

Accrued Liabilities

Expenses incurred but not yet paid (salaries, taxes).

Accrued Income Tax

Taxes owed for the current period but not yet paid.

Long Term Debt Due Within One Year

Portion of long-term debt due within 12 months.

Operating Lease Obligations Due Within One Year

Payments due under operating leases within a year.

Finance Lease Obligation Due Within One Year

Payments due under finance leases within a year.

Total Current Liabilities

Sum of all current obligations.

Long Term Debt

Loans or bonds due after one year.

Long Term Operating Lease Obligations

Lease payments due beyond one year.

Long Term Finance Lease Obligations

Finance lease payments due after one year.

Deferred Income Taxes and Other

Taxes or obligations postponed to future periods.

Commitments and Contingencies

Potential obligations (lawsuits, guarantees).

Equity

Owners’ claim on assets after liabilities.

Common Stock

Investment from shareholders in exchange for ownership.

Capital in Excess of Par Value

Additional money paid by shareholders above nominal stock value.

Retained Earnings

Profits kept in the company rather than paid as dividends.

Accumulated Other Comprehensive Loss

Unrealized losses not included in net income (currency, investments).

Total Shareholders Equity

Total value of ownership held by shareholders.

Non-controlling Interest

Portion of equity belonging to minority shareholders of subsidiaries.

Total Equity

Sum of shareholders’ equity and non-controlling interest.

Total Liabilities and Equity

Total financing of assets (should equal total assets).