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Understanding Balance Sheet Statement (Part 1) – Varsity by Zerodha

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A Balance sheet depicts the financial position of the company at any given point in time. Read about the liability side of a balance sheet in this chapter.

How to Read a Balance Sheet? Liabilities, Equity & more 6.1 – The balance sheet equation While the P&L statement gives us information about the company’s profitability, the balance sheet gives us information about the assets, liabilities, and shareholders equity. The P&L statement, as you understood, discusses the profitability for the financial year under consideration. Hence it is good to say that the P&L statement is standalone. However, the balance sheet is prepared on a flow basis, meaning, it has financial information about the company right from the time it was incorporated. Thus

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