Balance Sheet Basics

To assess the financial position or health

To record daily transactions

To forecast future profits

To calculate tax liabilities

To measure changes in net worth

To determine annual revenue

To calculate monthly expenses

To assess employee performance

Assets that can be sold without affecting long-term profit-generation capacity

Assets that are used for more than one year

Assets that are not liquid

Assets that are intangible

They are not valuable

They are intangible

They require a long-term commitment

They cannot realize full market value quickly

Contributed capital

Interest payments

Loan repayments

Depreciation

The ability to pay off all financial obligations

The extent to which the business has cash to meet immediate, short-term obligations

The profitability of the business

The growth rate of the business

The ability to expand operations

The extent to which the business has cash to meet immediate, short-term obligations

The business's ability to pay off all financial obligations

The efficiency of the business processes

Percentage of assets financed by creditors

Total assets owned by a company

Amount of cash reserves

Number of employees in a company

Profit-to-loss ratio

Debt-to-equity (D/E) ratio

Asset-to-liability ratio

Revenue-to-expense ratio

More revenue than the loan’s interest rate

Equal revenue to the loan’s interest rate

Less revenue than the loan’s interest rate

No revenue