These are terms your have to know for a balance sheet. The Annual Report: this is a document released by companies at the end of their fiscal year. Tells you what the CEO and other senior management have discussed about the past year as well as the upcoming year regarding the company. This should include financial documents. The 10K: This is a document filed with the SEC, which contains a detailed explanation of the business and what it does. (Filed annually) The 10q: The 10q is similar to the 10k, but is filed quarterly. All of this information will help you determine whether or not the company is worth your money. Ok, I think you are ready to make your own balance sheet now. Pretend that you are going to apply for a home equity loan to remodel your kitchen. The first think your going to do is ask the bank to borrow money. And the first thing the banker asks for is a list of your current finances. This involves a little work. Write down everything you have that is worth something for ex. your checking and savings accounts, mutual funds, house, cars, and other various objects of worth. Then, your going to write down all of your debts. Things like the mortgage, car payments, and your student loan. Take the debt you owe and subtract that to the things you have of value and now, and you have your net worth. You have created your balance sheet.

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