4.2Investment Foundations · Mission 6
Read the Balance Sheet
X-ray Cedar Works' $250m of assets, identify every claim funding them, and inspect the measurement rule behind each reported amount.
Your investigation
Prove the accounting equation, classify the lines, and separate book carrying amounts from current economic value.
22–26 minutesFour evidence scansBalance-Sheet X-ray
Cedar Works · Filing investigation
Evidence file 1 of 4
0/4 verified
OPS filing guide
A balance sheet stays in balance because creditors and shareholders have claims on the recognized assets.
Scan both sides and reconcile the totals.
Evidence file 1 · Prove the equation
Assets are funded by claims
Definition · accounting equation
Recognized assets equal recognized liabilities plus shareholders' equity. Equity is the residual accounting claim after liabilities.
AssetsResources controlled
Cash$20m
Accounts receivable$30m
Inventory$50m
Property, plant, and equipment$100m
Goodwill$20m
Right-of-use asset$30m
Total assets$250m
Liabilities + equityClaims on resources
Accounts payable$35m
Lease liabilities$30m
Debt$65m
Other liabilities$20m
Shareholders' equity$100m
Total claims$250m
Scan both sides and reconcile the totals.
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