What You Put in a Business Balance Sheet 6 of 11 in Series: The
Essentials of Keeping Your Business Accounts A balance sheet is
the financial condition of your business at an instant in time.
In your business balance sheet, you must put financial
information that's in constant motion because the activities of
the business go on nonstop. A business doesn't shut down to
prepare its balance sheet. The activities, or transactions, of a
business fall into three basic types: Operating activities: This
category refers to making sales and incurring expenses, and also
includes the allied transactions that are part and parcel of
making sales and incurring expenses. For example, a business
records sales revenue when sales are made on credit, and then,
later, records cash collections from customers. Keep in mind
that the term operating activities includes the allied
transactions that precede or are subsequent to the recording of
sales and expense transactions. Investing activities: This term
refers to making investments