based on his statements, you can tell that chief joseph

answer: if carl cornfield makes a payment on his new tractor:

in the current assets line the amount of available cash for the company reduces.

while in the liabilities line, the amount of accounts payable (debts) also reduces by the amount paid on the tractor.

balance sheet provides a picture of a company´s financial position of a business. it states its assets, liabilities and amount owned by the company´s shareholders also known as   equity (value of assets less the value of liability on that asset) of the business at a specific point in time.

there fore: assets = liability + shareholder´s equity.

these are arranged in a spreadsheet format.

included in the list of assets are:   cash, petty cash, temporary investments, accounts receivable, inventory, supplies, pre paid insurance, land and property, buildings, equipment, etc.

liabilities are considered as: notes payable, accounts payable, wages payable, interest payable, bonds payable, etc.

as for shareholder´s equity , examples are: common stock, retained earnings,etc.