How Is a Balance Sheet Used to Determine the Value of a Business?

Answer Balance sheets provide the basic accounting equation, which is, assets equal liabilities plus stockholder equity. Assets should always equal liabilities plus stockholder equity, if the two number a... Read More »

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Do You Increase Your Asset on the Balance Sheet to Market Value?

The balance sheet shows a company's net worth at a specific point in time. Items that appear on the balance sheet appear at book value or cost. Assets such as plant and equipment appear at cost les... Read More »

How Does GAAP Determine Whether an Intangible Asset Is Included on the Balance Sheet?

Most accounting is done on an accrual basis, meaning that costs and revenues are recorded in the time periods of their occurrence. Since some transactions can be difficult to date, a system of rule... Read More »

What Type of Data Is Used From the Balance Sheet to Create the Statement of Cash Flow?

Financial managers use various balance sheet accounts to prepare a statement of cash flow, also known as a liquidity report or cash flow statement. Before listing these accounts, it's important to ... Read More »

How to Determine the Value of Used Computers?

The value of a used computer may be needed for accounting purposes, to establish a sales price or to use as a tax figure. Determining the exact value of a computer can be a difficult process, espec... Read More »