Crime Against Humanity: the Holy GAAP, 13

Both the income statement and the balance sheet begin by taking a pen and paper and dividing a sheet in two columns, and both end by balancing the figures in each column so that their totals are the same.
The income statement reports what happened within a specified period of time, usually that between the previous financial statement and the current one; the balance sheet reports the state of things at a specific instant, usually that of the current financial statement. The income statement is the recording of a period of time, the balance sheet is the snapshot of an instant.
The income statement reports the income during that specified period of time in a column, and the outgo during that same period in the other column; their difference is the profit or loss in that same period, and it is entered in either one of the two columns, so that their totals are the same.
The balance sheet reports the assets available to the entity in a specific instant in a column, and to whom does the entity owe those assets in the other column.
In this investigation we are interested only in the balance sheet, so while setting the income statement aside, I’ll explain the meaning of the two columns of the balance sheet.
The entity the balance sheet refers to is an operating entity, and in order to operate it has to have resources to operate with, such as knowledge, money, personnel, land, buildings, plants, machinery, raw materials, energy, etc. The resources the entity owns are listed in the column named “assets”.
The resources owned by the entity have been purchased with some funds, and the entity accounts for those funds to those who provided them. The funds and their providers are listed in the column named “liabilities”.

Crime Against Humanity: the Holy GAAP