Course · 20 min read

Understanding the Balance Sheet Statement (Part 2)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

The second half of Varsity's balance sheet walkthrough, covering the assets side: fixed assets, investments, inventory, receivables and cash.

  • Read current assets (cash, receivables, inventory) against current liabilities to judge short-term health.
  • Non-current assets are what the business uses over years, such as equipment.
  • Notes to the accounts explain what sits inside each line.
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The question it answers

  1. How do I read a P&L, balance sheet, and cash flow statement?

Read with it

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  2. Varsity's line-by-line reading of an Indian company's profit and loss statement: revenue, other income, expenses and how they... zerodha.com Course · 20 min read Understanding the P&L Statement (Part 1) Karthik Rangappa, Zerodha Varsity
  3. Varsity's line-by-line reading of an Indian company's balance sheet, starting with the liabilities side: shareholders' funds,... zerodha.com Course · 25 min read Understanding the Balance Sheet Statement (Part 1) Karthik Rangappa, Zerodha Varsity
  4. Varsity's explanation of the cash flow statement in three parts, operating, investing and financing, and why profit and cash... zerodha.com Course · 20 min read The Cash Flow Statement (Varsity) Karthik Rangappa, Zerodha Varsity
  5. A thorough plain-English course on the balance sheet: current and long-term assets and liabilities, equity, and how it connects... accountingcoach.com Article · 30 min read Balance Sheet (Explanation) Harold Averkamp, AccountingCoach
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