3 main sections of the blance sheet

3 main sections of the balance sheet are:

Answer:

1. ownership equity

2. liabilities

3. assets

Asset, liability and equity

Explanation:

There are 3 main sections in balance sheets;

1. Assets - have value because a business can use or exchange them to produce the services or products of the business. Assets mainly categorize into current and non-current.

2. Liabilities - are the debts owed by a business, often incurred to fund its operation, it results to a possible outflow in the future. Liabiities also divided into current and non-current portion, that depends on its maturity period.

3. Equity - represents retained earnings and funds contributed by its shareholders