Learn how to analyze a company's balance sheet, including assets, liabilities, and equity, for smarter investment decisions.

These are examples of assets not normally easily disposed of. Key Takeaway: Formally, if an asset isn't expected to be cashable within a year, it isn’t considered a current asset. In business, a ...

Discover how long accounts receivable can stay outstanding, what impacts they have on businesses, and strategies for managing ...

Understanding working capital as a small business owner can help you grow your business or take advantage of bigger ...

For a business, liquidity means the ability to generate cash. Nearly every asset a company has is liquid to some degree, but some are more liquid than other. Merchandise inventory and accounts ...

In financial and investment terms, net worth is defined as a person’s or entity’s total assets minus their liabilities. Both should be headers on your balance sheet. What is an asset — and are you ...

Strong accounting practices are key to managing your small business. A major part of accounting is understanding a balance sheet, the part of your financial statements that show your net worth. To ...

Assets generate income and appreciate in value, while liabilities drain resources and depreciate over time. Do you want to improve your net worth? Probably so. But if you’re like many people, you ...

Accountants consider works in progress (WIP) to be current assets because there's a reasonable expectation that such items will become marketable products that can potentially convert into cash within ...

Note: This article is part of Morningstar's Guide to Saving for Retirement. An earlier version of this article appeared on Jan. 28, 2016. You've run the numbers to assess whether your current ...