Introduction to Balance Sheet  The accounting balance sheet is
one of the major financial statements used by accountants and
business owners. (The other major financial statements are the
income statement, statement of cash flows, and statement of
stockholders' equity) The balance sheet is also referred to as
the statement of financial position.    In Part 1 we will
explain the components of the balance sheet and in Part 2 we
will present a sample balance sheet. If you are interested in
balance sheet analysis, that is included in the Explanation of
Financial Ratios.     • Assets   • Liabilities   • Owner's
(Stockholders') Equity   Assets are things that the company
owns. They are the resources of the company that have been
acquired through transactions, and have future economic value
that can be measured and expressed in dollars. Assets also
include costs paid in advance that have not yet expired, such as
prepaid advertising, prepaid insurance, prepaid legal fees, and
prepaid rent. (For a discussion of prepai