The balance sheet is organized into three parts: (1) assets, (2)
liabilities, and (3) stockholders' equity at a specified date
(typically, this date is the last day of an accounting period).
The first section of the balance sheet reports the company's assets
and includes such things as cash, accounts receivable, inventory,
prepaid insurance, buildings, and equipment. The next section reports
the company's liabilities; these are obligations that are due at
the date of the balance sheet and often include the word "payable" in
their title (Notes Payable, Accounts Payable, Wages Payable, and
Interest Payable). The final section is stockholders' equity,
defined as the difference between the amount of assets and the amount of
liabilities. (You can learn more about the balance sheet at Explanation of Balance Sheet.)