What are the major components of equities

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Assignment

Please answer 2 questions below. APA format

What is balance sheet? What are the main purposes to have this financial statement? Illustrate your points with examples to show the basic structure and relationship between the basic items.

For assets, why liquidity is very important for a company? Illustrate your points to show why there are difficulties if a company encounters illiquid issues.

Assets are classified into current and non-current. Show with examples what major assets you may see in a typical balance sheet, and what likely criteria are applied to classify and measure these assets.

What are liabilities? How are current and long-term liabilities classified? Why must a company borrow long-term debts to finance long-term assets?

What are the shareholders' equities? What are the major components of equities? For a young firm, what are the largest items it may have in the equity section? How about for an established firm?

Do you think that the structure of balance sheets discussed in the text can be applied to all companies in all industries? Why or why not? Hint: Refer to Chapter 12 for special industries for their typical balance sheets.

Reference no: EM131658385

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