Assets on a balance sheet are classified into current assets and non-current assets. Assets are on the left side of a balance sheet.
The balance sheet contains details on company liabilities and owner's equity.
Working capital is a financial metric which represents operating liquidity available to a business, organization and other entity.
Liquidity, a business's ability to pay obligations, can be assessed using various ratios: current ratio, quick ratio, etc.
The debt-to-equity ratio (D/E) indicates the relative proportion of shareholder's equity and debt used to finance a company's assets.
Book value is the price paid for a particular asset, while market value is the price at which you could presently sell the same asset.
The three limitations to balance sheets are assets being recorded at historical cost, use of estimates, and the omission of valuable non-monetary assets.