ENT 301 Grantham University Entrepreneurship Discussion


Assets and Liabilities in a Balance Sheet

Assets are defined as resources  or things of value that are owned by a company. Some examples of assets  which are obvious and will be reported on a company’s balance sheet  include: cash, accounts  receivable, inventory,investments, land, buildings, and equipment.

A liability is defined as  a company’s legal financial debts or obligations that arise during the  course of business operations. Liabilities include loans, accounts  payable, mortgages, deferred revenues and accrued expenses. 

A balance sheet is a snapshot of  how a business is performing at a given time. A balance sheet is also a  summary of the financial balances of an organization, whether it be a  sole proprietorship, a business partnership, a corporation, private  limited company or other organization such as Government or  not-for-profit entity.

Consider the venture you have  developed throughout this course. What are two types of assets and two  types of liabilities that would be found in your new venture’s balance  sheet and explain why your choices are important for your company.