Finance School of Management The Balance sheet Summarizing a firms assets(what it owns), liabilities(what it owes), and net worth(owners equity) at a moment in time Amounts measured at historical values(acquisition cost)and historical exchange rates. Prepared according to GAAP (Generally accepted Accounting Principles) Exchange-listed companies must comply with SEC (Securities and Exchange commission)rules. uesTc4 Finance School of Management The Balance Sheet ❖ Summarizing a firm’s assets (what it owns), liabilities (what it owes), and net worth (owners’ equity) at a moment in time. – Amounts measured at historical values (acquisition cost) and historical exchange rates. – Prepared according to GAAP (Generally Accepted Accounting Principles). – Exchange-listed companies must comply with SEC (Securities and Exchange Commission) rules