Learner
1057 Points
Posted on 24 December 2013
Hmm..its theoretically possible definitely since u can fund assets using owners equity & retained earnings..Of course balance sheet of a newly incorporated company with 100% equity wud show no liabilities..but as u kick start the business, I dont think u can avoid liabilties entirely. Even if its a 100% equity firm, still I guess u will incur current liabilities. For example u may purchase raw materials on credit..now that leads to an asset in the form of stock & liability in the form of trade creditors.
There are many companies which dont hv any long-term debts(but even these companies hv sme current liabilities). I will give u sme links of such companies' balance sheets. Hv a look..
https://finance.yahoo.com/q/bs?s=FAST+Balance+Sheet&annual
https://finance.yahoo.com/q/bs?s=lsi
https://finance.yahoo.com/q/bs?s=MA+Balance+Sheet&annual
https://finance.yahoo.com/q/bs?s=CTXS+Balance+Sheet&annual
https://in.finance.yahoo.com/q/bs?s=CTSH&annual
https://finance.yahoo.com/q/bs?s=aapl+Balance+Sheet&annual