A balance sheet can contain negative values, most commonly when a business is spending more than it is making. But the basic formula — assets = liabilities + shareholders' equity — should ...

You can spot creative accounting practices on a company's balance sheet by analyzing its assets, liabilities, and equity. Overstating assets and/or understating liabilities leads to increased net ...

Did You Know? Shareholders' equity can be negative or positive. If it's negative, the company owes more than its total assets. This situation is called balance sheet insolvency and signals that ...