The balance sheet functions under the accounting formula: Assets = liabilities + owners' equity In the case of our hedge fund, assets are long stock positions and cash.

This liquidity is what places money market funds in the current asset category of your balance sheet. Balance Sheet The balance sheet lists your company's assets, liabilities and equity.

A balance sheet includes a summary of a business’s assets, liabilities, and capital. Learn what a balance sheet should include and how to create your own.

Example of Balance Sheet Reserves . As an example of balance sheet reserves for a company not in the insurance company, Company XYZ must recall one of its products and issue refunds to customers.