Balance sheets (1): A look at your financial health - Fine Homebuilding

previous
  • Basement Remodeling Tips
    Basement Remodeling Tips
  • 7 Smart Kitchen Solutions
    7 Smart Kitchen Solutions
  • Read FHB on Your iPad
    Read FHB on Your iPad
  • Master Carpenter Videos
    Master Carpenter Videos
  • Video: Install a Fence
    Video: Install a Fence
  • Magazine Departments
    Magazine Departments
  • Design Inspiration
    Design Inspiration
  • Ultimate Deck Build 2015
    Ultimate Deck Build 2015
  • 9 Concrete Countertops Ideas
    9 Concrete Countertops Ideas
  • All about Roofing
    All about Roofing
  • 7 Trim Carpentry Secrets
    7 Trim Carpentry Secrets
  • Video Series: Tile a Bathroom
    Video Series: Tile a Bathroom
  • Remodeling Articles
    Remodeling Articles
  • Energy-Smart Details
    Energy-Smart Details
  • Tips & Techniques for Painting
    Tips & Techniques for Painting
  • Clever daily tip in your inbox
    Clever daily tip in your inbox
  • 7 Small Bathroom Layouts
    7 Small Bathroom Layouts
  • Radiant Heat Comparison
    Radiant Heat Comparison
next

Building Business

Building Business


Balance sheets (1): A look at your financial health

comments (0) October 25th, 2011 in Blogs

An introduction to how assets, liabilities, and equity must balance

This Khan Academy video teaches the basics, including exactly what assets, liabilities, and equity are.

 

 

Assets give you future economic benefit. Cash is an asset. You can use it buy a house, eat at a restaurant, or make someone dance for you.

Liability is an obligation to someone else. It may be an IOU, it may be a promise to dance for someone sometime in the future.

Equity is what is left of your assets after your liabilities are paid. Equity is what you own.

 

In this video lesson, Sal has $250k in cash and wants to buy a $1M house.

He gets a loan from the bank for $750k to buy the house.

 

His balance sheet looks like this:

Liabilities:

$750k

Assets:

$250k + $750k = $1M

Equity:

$1M - $750k = $250k

 

 

 

 

 

 

 

 

 

This is the first in a series we're calling DIY MBA.


 


This video comes from www.khanacademy.org, a non-profit dedicated to bringing a great education to anyone who wants one.

 


 

 

 



posted in: Blogs, business, diy mba

Comments (0)

Log in or create a free account to post a comment.