Modern accounting has its roots in the Italian Renaissance. Without modern accounting we wouldn't be able to know what we owe vs. what we own. Understanding the system behind accounting and the three most important financial statements is key to understanding finance. In this lesson you'll learn: • How double entry bookkeeping changed accounting forever • The balance sheet's structure and line items • Why accounting is important
The balance sheet is divided into three sections: Assets, liabilities and equity. Within the assets sections, how are the items listed?