Is it helping you, um, uh, generate income. So if it is like for example, um, if you made your roof better but it actually, um, extended the life of the roof, that would be, um, added to the value of your assets. So, um, something that could extend it or that could mean, uh, could have a, a lasting effect on your revenue generating activity that would be, um, considered as your asset as opposed to actually, um, just repairs. Cause at that point it’ll be a betterment or an improvement to your asset. That’s right. Yeah. Um, how many asset accounts should a corporation have? Yeah, again, it varies from corporation to corporation. Some don’t have any assets. Um, there’s some corporations that don’t really need anything to, to run their business at like with, especially when they’re starting out. Um, they may rent their, their space. Um, you know, they, they have, they may have just, uh, maybe one laptop or, or something that they don’t need a whole lot of equipment, um, that’s going to depreciate with Edmonton Bookkeeping.
And uh, and that, but then there’s other ones I’ve seen one where they’ve had, um, you know, 10 sleds and, um, you know, there is a whole bunch of motorbikes and you know, all stuff, um, the, uh, quads, things like that. But all stuff that they need for their corporation, they, they actually do use it in their corporation. So they had, um, like lots of like maybe 25 or 30 different asset accounts just because they had so much equipment. Um, but it really, it’s, you know, the, the, it all went under equipment, but they were all, um, itemized. Yeah. It’s, it’s, it’s very useful to group your assets, especially when you’re reading your reports. Yeah, that’s great. Um, what is, uh, an accounts payable? So accounts payable, exact opposite of accounts receivable. So the accounts payable is what you’re paying to other suppliers. Um, so again, you get a bill from a supplier, you entered into your, um, your accounting software or whatever that might be, and it goes into accounts payable with Edmonton Bookkeeping.
Once you pay that bill, whether it’s right away or in 30 days or, uh, when you have money, when everybody, whenever you pay that, it moves from the balance sheet onto the income statement and goes into whatever the extent it’s a counters. Um, can a person credit can be or credit card beyond the balance sheet, a personal credit card. So, um, we don’t normally put the personal credit cards or personal bank accounts on the balance sheet. Um, on the balance sheet, we do have a shareholder loan. So if you use your personal credit card to pay for corporate expenses, um, we would credit the shareholder loan for that, those amounts, uh, rather than, um, you know, actually putting the personal credit card on the balance sheet. Um, again, we would strongly recommend having a corporate credit card and keeping those separate, keeping your corporate and personal bank accounts separate and keeping your personal and corporate credit cards separate Edmonton Bookkeeping.
Yeah. It just makes it so much easier. Yeah. And the, the only reason is that you just don’t want to commingle your personal expenses with your business expenses. Exactly. Yeah. If you ever get audited, it’s so much easier to just, this is our corporate business card or credit card and we just, we use it only for, it’s so much easier than having to say, well, yeah, it was on the personal credit card, but really it was a business expense. Um, what are the current liabilities? Uh, so current liabilities, uh, again, it’s going to be your credit cards, um, that you’re paying off, um, your payroll deductions. Um, so probably, you know, hopefully if you’re running a small business and you have employees, uh, when you play to pay your employees, you have to, um, withhold tax and remit that to the CRA. Uh, so those are, those are things that are on the, the liabilities, the current liabilities on the book things perspective, really current liabilities or just anything that you owe within the year of Edmonton Bookkeeping.
Um, but sometimes, um, if you’d go to your accountant and they prepare your, um, your and financial statements, they would have a portion of your longterm liabilities as part of the current liabilities. That just means that that portion of the loan is due within a year. So it’s not necessarily a separate loan account. It could be the same loan account, but that just the portion or the current portion that’s due within the next year. Yeah. Um, what is the equity? Yeah, so the equity comes out at the very end of your, your balance sheets and that basically tells you kind of where you’re at and it tells you, um, you know, you might have shares, you list the shares that are in the company. Um, just, um, you want to put in there if there’s any dividends that have been paid out. Um, so that’s kind of what showing with the, the equity with Edmonton Bookkeeping.
Yeah. So anything that has to do with the shareholders are the owners of the company, um, any of their contributions. So any, uh, if you’re a corporation that’d be your shares or your common shares, uh, anything that goes up to you, which is dividends, um, anything that is, uh, coming into the business without, um, any financing. So any of your income which will go into your return earnings or deficit if you’re taking out too much from your corporation. Um, another thing, uh, that would be an your equity, um, if you’re a proprietorship would be anything that you withdraw from the company cause then, um, it wouldn’t be a shareholder loan since you’re a shareholder. So it gets taken out, uh, directly from your contribution to your proprietorship. Yeah. So any, any contribution and withdrawal from your proprietorship when show up in your equity? Yeah. Yeah.
And just, um, that’s probably all we have about the balance sheet. But just one thing that I wanted to point out was that it’s really important to review your balance sheet with your income statement. Um, lots of times people just go straight to the income statement cause it really told, tells you the bottom line of how much money you’ve made. Right. But, um, it’s really important to, to view both, um, reports together. Um, and I think we’re going to have another video sometime about the income statements and just a little bit more about that. So, yeah, for sure. Well, thanks for, uh, joining us today. Um, if you liked the video, please hit like and subscribe. If you have any questions, feel free to comment on our section and we’ll get to you, um, as much as we can or as soon as we can. Um, and see you guys on our next episode with Edmonton Bookkeeping.