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03: Understanding the Balance Sheet

Boosting Your Financial IQ

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Understanding the Balance Sheet and Its Components

This chapter explains the concept of a balance sheet and its importance in analyzing a company's financial performance. It discusses the three sections of the balance sheet, namely assets, liabilities, and equity, and introduces an accounting formula that incorporates these sections. The chapter also explores various accounts included in the balance sheet, such as accounts receivable, inventory, prepaids, and non-current assets.

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