Accounting

Classification of financial values i.e. Assets, Liabilities and Equity. It looks at measuring values and attributing them to labels according to what we own and what we owe.

It tells us where a company's returns are coming from

Finance expands on

  1. Valuation of our assets and

  2. Funded through:

  • Debt

  • Equity

The understanding of value of what we own as well as the value of what we owe and how we intend to finance our assets.

Where a company's obligations are owed

"A person should not go to sleep at night until the debits equal the credits" - Luca Pacioli

Balance Sheet