[Verse 1] When companies report their worth and health Financial statements tell the tale of wealth Five building blocks create this sacred chart Assets and liabilities, that's where we start Plus equity, the owner's slice of pie Income and expenses make the picture fly [Chorus] A-L-E-I-E, remember these five keys Assets what you own, Liabilities what you owe Equity's the difference, watch your ownership grow Income flows in golden, Expenses drain away Five elements dancing in the balance every day [Verse 2] Assets are resources with future power Cash and inventory, buildings that tower Recognition needs control and measured cost Probable benefits or the asset's lost From patents to equipment, land to gold If it brings value, let the asset story be told [Chorus] A-L-E-I-E, remember these five keys Assets what you own, Liabilities what you owe Equity's the difference, watch your ownership grow Income flows in golden, Expenses drain away Five elements dancing in the balance every day [Verse 3] Liabilities are duties you must pay Loans and wages due another day Present obligations from the past Probable outflows, economically vast Mortgages and taxes, accounts payable too Settlement required, these debts pursue [Bridge] Equity's the residual claim Assets minus debts, what remains the same Income boosts your economic gain While expenses cause that wealth to wane Recognition, measurement, every rule applies To paint the portrait of where value lies [Chorus] A-L-E-I-E, remember these five keys Assets what you own, Liabilities what you owe Equity's the difference, watch your ownership grow Income flows in golden, Expenses drain away Five elements dancing in the balance every day [Outro] Balance sheet equation, income statement flow These five elements, everything you need to know From boardroom to classroom, let the knowledge gleam Financial statements built from this foundational scheme
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