Balance Sheets

4. Total ssets
This figure represents the total dollar value of both the short-term and long-term assets of your business.

5. Liabilities and owners’ equity
This includes all debts and obligations owed by the business to outside creditors, vendors, or banks that are payable within one year, plus the owners’ equity. Often, this side of the balance sheet is simply referred to as “Liabilities.”  
Accounts payable
This is comprised of all short-term obligations owed by your business to creditors, suppliers, and other vendors. Accounts payable can include supplies and materials acquired on credit.
Notes payable
This represents money owed on a short-term collection cycle of one year or less. It may include bank notes, mortgage obligations, or vehicle payments.
Accrued payroll and withholding
This includes any earned wages or withholdings that are owed to or for employees but have not yet been paid.
Total current liabilities
This is the sum total of all current liabilities owed to creditors that must be paid within a one-year time frame.
Long-term liabilities
These are any debts or obligations owed by the business that are due more than one year out from the current date.
Mortgage note payable
This is the balance of a mortgage that extends out beyond the current year. For example, you may have paid off three years of a fifteen-year mortgage note, of which the remaining eleven years, not counting the current year, are considered long-term.
Owners’ equity
Sometimes this is referred to as stockholders’ equity. Owners’ equity is made up of the initial investment in the business as well as any retained earnings that are reinvested in the business.
Common stock
This is stock issued as part of the initial or later-stage investment in the business.
Retained earnings
These are earnings reinvested in the business after the deduction of any distributions to shareholders, such as dividend payments.

6. Total liabilities and owners’ equity
This comprises all debts and monies that are owed to outside creditors, vendors, or banks and the remaining monies that are owed to shareholders, including retained earnings reinvested in the business.