Wondering what is a balance sheet? It is a simple report showing what a company owns and owes.
In simple words: A balance sheet is like checking a trader's shop to see their goods and debts. For beginners on the NGX, this balance sheet helps you understand the health of a business before buying shares.
For example: If a kiosk owner has goods worth ten thousand Naira and borrowed five thousand Naira, they are standing on solid ground.
Remember:
- Assets are the things a company owns.
- Liabilities are the debts the company owes.
- Healthy businesses usually own more than they owe.
Try it on StocktoWealth: Look at the numbers for HONYFLOUR using your virtual money and check their financial records.
This is for learning, not financial advice.