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Appendix B: If Numbers Are Your Friends > What Does an Italian Monk Have to Do ... - Pg. 372

372 Part VI: Appendixes It's not a coincidence that the net asset value (that's total assets less total lia- bilities) equals the total owner's equity value. If you correctly calculate each of the numbers that go on the balance sheet, the two totals are always equal. A balance sheet lists asset, liability, and owner's equity balances as of a spe- cific date. It gives you a financial snapshot at a point in time. Usually, you pre- pare a balance sheet whenever you prepare a profit and loss statement. The balance sheet shows account balances for the last day of the financial year and interim accounting period. (Hey, it's kind of cool that after only a few pages of this appendix, you're reading and understanding such terms as finan- cial year and interim accounting period.) What Does an Italian Monk Have to Do with Anything? So far, we've provided narrative descriptions of all the financial events that affect the balance sheet and the income statement. We described how you started the business with £5,000 of cash (a £4,000 loan from your mother-in- law and £1,000 of cash that you yourself invested). At an even earlier point in this appendix, we noted how you hired out a boat to the Hamsters for £200