What is depicted on the left side of a balance sheet?

The left side of a balance sheet is dedicated to assets, which represent the resources owned by a business that are expected to provide future economic benefits. This section lists various types of assets including current assets, such as cash and accounts receivable, and non-current assets, such as property and equipment.

Displaying assets on the left side allows for a clear view of what the company possesses as part of its financial structure. This information is crucial for investors, creditors, and management to assess the financial health and stability of the business. In contrast, liabilities, which show what a business owes, and equity, reflecting the owners' stake in the company, are located on the right side of the balance sheet. Understanding this layout is essential for interpreting the financial position of a business accurately.