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Originally Posted by flexdeck
I am really confused about balance sheets...
If assets are supposed to equal liabilities what happens to all the stuff youve spent money on other than stock which has now been used ie business trips, stationary etc, it stands to reason more money would be invested in a company than it currently has, particularly in the 1st year.
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Those are expenses on the income statement and will be reflected in your retained (deficit) earnings after the period close. The retained earnings are a component of stockholder's equity in the equity section of the balance sheet....