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Finance ABC
11. Financial Statements: The Balance Sheet
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Welcome to Finance ABC! I’m Emma Lai, and today we’re diving into one of the essential tools for understanding a company’s financial health: the balance sheet. Whether you’re a business owner, an investor, or just curious about how companies manage their finances, understanding the balance sheet gives you insight into a company’s assets, liabilities, and overall financial position. It’s a core component of a company’s financial statements and offers a snapshot of what a company owns, what it owes, and the difference between the two — which represents the company’s equity.
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