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42. How to Explain: The Balance Sheet

The CFO Report

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How to Use the Balance Sheet to Determine the Financial Health of Your Company

The balance sheet is one of three financial statements in your business. It goes along with the statement of cash flows and the profit and loss statement. All balance sheets have three primary sections, assets, liabilities, and equity. The left side must always equal the right side - this is why they call it a balance sheet.

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