Lessons: Chapter 5 - What the Balance Sheet Reveals

Important Links

Breaking down the balance sheet: Balance Sheet: Balance Sheets

Video on the balance sheet: Balance Sheets

Video: How To Read a Balance Sheet

Video from MoneyWeek on balance sheets: MoneyWeek Video

Video on how to create a balance sheet: Balance Sheet Creation



5.1: What does the book value of a company represent? 

5.2: Company A is exactly like Company B except that B has borrowed more money than Company B, which company will have a higher book value?

5.3: If a company needs to pay a bill one year from now, which of these items on its balance sheet can best tell if it can easily do so?

  1. Total Assets
  2. Total Assets divided by Total Liabilities
  3. Current Assets
  4. Current Assets divided by Current Liabilities
  5. Current Liabilities


> Answers to Chapter 5 Assignments